The practice of bookkeeping has been around for centuries. The business landscape is evolving with every passing day, and with every change in the tax code, it becomes more necessary than ever to maintain your books. In every business, there are several transactions on a day-to-day basis that can have far-reaching consequences, which makes recording them an absolute imperative. When it comes to maintaining their books, many businesses fail to do the needful in a timely fashion, which can get them in trouble with the IRS. Thanks to several rumors and misconceptions surrounding bookkeeping, several business owners fail to recognize the importance of the activity. As a business owner, you need to steer clear of these myths. To help you take informed decisions, we attempt to shatter some such misconceptions. Take a look.
1. I don’t need bookkeeping until its tax time
The weeks leading up to tax time are arguably the most crucial period for any bookkeeper. That said, it is not the only time when updating books should be their priority. Bookkeeping must be a regular practice, and not a one-time act. Year-round bookkeeping helps ensure smooth sailing when filing returns. Businesses are able to identify and leverage tax exemptions. Additionally, maintaining books regularly can alert the business to errors that, if not addressed in a timely fashion, can snowball into major concerns.
2. I don’t need bookkeeping for my small business
Just because you have a small business with fewer transactions, does not mean you do not need bookkeeping. There are more benefits of maintaining your books than you could imagine. Bookkeeping can help you review your financials, understand trends, and identify tax benefits. Maintaining books help businesses track their progress with regard to achieving their financial goals.
3. Because I use an accounting software, I don’t need any help
Having an accounting software by your side is great and can help you save time. That said, you would still need bookkeepers who understand the implication of every transaction that they feed into the system. They must know what to make of the numbers appearing in different accounts. Bookkeepers must also be adept at categorizing transactions for tax benefits. If you think your accounts team is already burdened, consider outsourcing your bookkeeping to a virtual bookkeeping company in Santa Rosa.
To ensure your financial goals are always in your sight, steer clear of the above-mentioned bookkeeping myths. If you are looking for a trustworthy partner who can help with bookkeeping, Virtual Jeannie Bookkeeping Services would be happy to help. Over the years, we have helped several small businesses streamline their bookkeeping process and can do the same for you. To enquire about our services, call at 707-664-1425. Alternatively, if you have questions for our team, you can fill out our contact form and we’ll be in touch shortly.
