There are many businesses that have gone down the gutter because they didn’t maintain proper financial records. Proper bookkeeping is adamant for every business, and especially the small ones that are still growing. In this article, we are going to take a look at the importance of bookkeeping for small businesses.
Avoid a CRA Audit
The Canada Revenue Authority audits many small businesses, and they even increased funding by an additional $100 million toward CRA compliance programs. This means that they have the finances to audit businesses, and this also means that having messy financial records could land the business in trouble.
Limit the Pain of an Audit
When the auditing does take place and the financial records are in bad order, they will take longer to finish, and this could mean losing out on some business. When complying with CRA auditors, companies lose up to 61.6 hours, which are gold to any business.
Dodge CRA penalties and sanctions
Businesses that don’t keep proper financial records could face penalties and/ or sanctions.
Make Sure You’re Not Missing Deductions
Sloppy bookkeeping could mean missing out legitimate tax deductions, or lead to a company’s tax deductions being disallowed. Remember, the rule says that the CRA is always right, and you wrong, unless the financial records prove otherwise.
Save Time When You File
It saves you last minute hustles of having to find paperwork, especially when it comes time to file the end year taxes and submit the GST/HST remittance. Recording on the go is the best way to avoid that.
Keep a Clear Picture the Company’s Financial Health
You can only know if you’re making profits or loses if you have sound financial records that monitor every penny that comes in and goes out. This is also important when securing capital for the business, or even selling it, since they would want to know the past performance.
Irena’s XERO Bookkeeping, Sydney
Bookkeeping isn’t everyone’s cup of tea, and at times hiring someone full time to do it wouldn’t be financially viable. When businesses, and especially small upcoming ones, are ever in such situations, the best option is to hire independent professional bookkeepers. Companies like Irena’s XERO Bookkeepers Alexandria, work with various software platforms such as Xero, MYOB, and Quickbooks, among others. Irena’s Bookkeeping handles small and medium sized businesses, identifying, reporting, and implementing efficiency improvements when approved. They offer services such as:
- Set-up and data entry
- Accounts Payable
- Accounts Receivable
- Inventory Control
- Month and Year End Accounts
- Monthly and Annual Reporting
- Bank and Credit Card Reconciliations
- Debt collection
- Manual Bookkeeping
- Filing and Administration
Irena’s XERO Bookkeeping come to your businesses at your convenience, whether it is a couple of days a week, monthly, or even yearly to do the bookkeeping. They offer free quotes, booking appointments, and consultations for their services.
Bookkeeping is very important for businesses for the points mentioned above. They could actually determine whether a business is growing or falling. Hiring professionals like Irena’s Bookkeeping to do the work for your organization is probably the best way around it.