WHY IS BOOKKEEPING IMPORTANT FOR SMALL BUSINESSES?
– BY MADDIE CRAIG | 2023
Small businesses are the backbone of the United States economy.
Small Business Nation
According to The U.S. Small Business Administration, small businesses account for more than half of all private sector jobs and more than 60 percent of all new jobs created in the past decade.
In order for small businesses to continue to contribute to the economy, it is important for them to keep accurate records of their income and expenses.
What Do You Mean By Bookkeeping?
Bookkeeping is the process of recording financial transactions for a business.
What Do the Numbers Tell Me?
By maintaining accurate bookkeeping records, businesses can track their profits and losses over time and make informed decisions about how to grow their business. Additionally, bookkeeping can help businesses stay compliant with tax laws and avoid penalties from the IRS.
What are the Dangers?
Many small businesses attempt to manage their finances without formal bookkeeping procedures. This can be a recipe for disaster, as businesses have no way of knowing how much money they're making or spending. This can affect small business owner's ability to make sound financial decisions and could ultimately lead to the downfall of a business.
What Can I Do About It?
Having a clear picture of your finances year-round can help your business move from just surviving to THRIVING and keep you in control.