Below are just a couple reasons you should consider upgrading your bookkeeping practices:
Consider lost tax benefits
A an entrepreneur you have available many tax benefits, but in order to take advantage of them you need to be advised on the rules and it is imperative that you track your financials. If your financials are a mess then your CPA may not be able to properly advise you as to the tax breaks you could be receiving.
Time is Money
Consider the amount of time spent each day, week, month you spend gathering receipts, sorting expenses, costs of doing business and licensure documents. Now add in time for payroll, tax preparation, and time spent preparing your taxes. How much is your time worth. What could you have been doing to grow your business or in time spent with loved ones during those hours.
Consider that at 1 hour a day or 5 hours a week would equal 20 hours a month of your valued. For example consider your time at $15 per hour, at the end of the year that comes to (on the low end) $3,600. We all know your time, especially time with family is worth even more than this!
You know how important you time is, so why are you wasting so much of it here?
What if you do it Wrong?
You are a professional for your industry, but you may not be an accountant, CPA or financial advisor, so there may often be that underlying question, “Am I doing this correctly?” No one wants to risk an audit. What if the IRS decides this is the year they want to look through your records…will you be ready?
Banking – It’ can be easier…
With proper bookkeeping practices even the industries that require complicated financial reports such as real estate investors will have an easier time reconciling. By staying on top of things you may also shorten the process when requesting financing as well.
Are you Making a Profit?
What were your sales numbers last June and what can you do to improve this year’s sales? Do you have simple easy to read accounting that you can pull up and plan the future of your company? Do you know what was your most profitable month, what products historically do better seasonally? Would hiring more staff provide you more productivity or would the additional cost hurt your bottom line?
Having an up to date accounting system for your business will put you in the top you your game. The answers to these questions and more will be at your fingertips allowing you to forecast trends in your markets and help you to prepare for changes in your industry.
Do It Now or Do It Later
I you do not get control of your bookkeeping your CPA will suffer the consequences and charge you appropriately for his/her time. Not only will this be more costly but time could be pulled away from them to provide you meaningful advice. Do you really want to pay a premium price to have your CPA do your book-keeping?
Any of the items above are reason enough to upgrade your bookkeeping, but all together you should be thoroughly convinced that you have to stay on top of your finances or they will cost you in the long run.
Whether you are a current or prospective client, be assured that individuals and businesses who choose Brownsberger & Messineo, LLC receive competent and timely advice. We are here to help clients maintain financial viability in the present, while taking a proactive approach to achieve future goals.
Contact us today at 813-788-3378