For many entrepreneurs, record keeping and accounting are the backbones of a smooth business operation. These administrative tasks require recording source documents for business operations and financial transactions, which is crucial in analyzing their organizations’ financial position and capacity.
As accounting and bookkeeping play a critical role in monitoring your business’s financial health, ensuring that you have up-to-date records is vital. But apart from this, you can also reap other benefits from having up-to-date accounting and bookkeeping records. Here are some of them:
Speed up the planning and decision-making process
Accurate, up-to-date accounting and bookkeeping records help you accomplish your organization’s objectives. Your financial records are vital in your business’s budgeting and planning processes, helping you make the right decisions and create better policies to improve your business’s overall efficiency.
Provide better understanding of your business’s financial position
Audit books, financial statements, and sales and purchase reports, among other financial records, reflect your organization’s financial position. With accurate and up-to-date records, your business can compare accounts from previous years to analyze your business results and growth. This will help you weigh if your organization is growing at a favourable rate or if you need to make changes to your business management to improve the likelihood of your business’s success.
Make the tax preparation process more comfortable
Keeping up-to-date bookkeeping and accounting records is among the best strategies that you should be practicing for your business. This will help you effectively prepare for your taxes well before the filing season. Accordingly, planning for your taxes throughout the fiscal year allows you to make strategic decisions to reduce your overall tax by determining your deductibles.
You will have a much easier time conducting an audit when you have up-to-date records. With good accounting and bookkeeping systems, you can quickly and efficiently produce detailed financial statements.
Having detailed and up-to-date balance sheets, cash flow statements, income statements, and other accounting documents will allow you to effectively check for any errors with the transaction entries and help you become prepared in case of an audit from the Canada Revenue Agency (CRA).
Create better relations with banks and other creditors
With up-to-date records, you can present accurate financial statements such as income statements, balance sheets, and cash flow statements when getting a loan or taking on investors. Such financial records can show how much your business is earning, how expenses affect your revenue, and how money is circulating throughout operations related to your business.
Banks and other creditors can use these financial statements to determine whether or not your business is healthily growing or progressing and whether they should grant you a loan. Consequently, when they see how your enterprise is striving, they will be more inclined to provide you with more affordable loans.
Up-to-date accounting and bookkeeping records will allow you to monitor and evaluate your progress, improve your performance and growth, navigate the financial challenges, and gain confidence in your organization.
Leveraging cloud accounting solutions or bookkeeping software programs are among the excellent strategies you can do to ensure accurate and up-to-the-minute records. These can allow you to comfortably and conveniently record, track, and categorize your business’s financial transactions.
Where to get easy-to-use and time-saving bookkeeping and accounting services?
KIPPIN is a cloud-based mobile bookkeeping service that aims to make people’s lives easier. We provide accounting, bookkeeping, payroll, and tax services – all on a cloud platform.
We align our clients to top Bookkeepers and Accountants on our platform. We also provide a software-only solution, allowing our clients to manage their own books and automate the accounting process using our accounting platform.
Contact us today at 1-905-581-9362 or [email protected] You may also visit our website at www.kippinitsimple.com to learn more about our products and services.