Keeping your business books isn’t something you do just because you want to save on tax (But if you do exploring, check out our taxation services). It can prevent you from getting dragged into a lawsuit over failure to comply with regulations. In this article, we will focus on the reasons why you can’t afford to be messy when it comes to bookkeeping.
More sanity and less stress
A disorganized bookkeeping system can stress you up when it comes to recording daily transactions or other entries. This will make you feel undone and affect your overall performance. Therefore, it is advisable to have sound bookkeeping practices as it will not only save you money and time but also relieve you the stress associated with messy transaction records.
Decisions regarding business expansion, operations, upsizing, and more are made based on information sourced from your business records. Having a sound bookkeeping system ensures that you are tracking your expenses and revenue well, and this information is very useful when it comes to budgeting and decision making. Do you expect to make the right decisions and succeed in your business if you can’t keep accurate records?
Accurate financial statements
Keep in mind that every financial statement is very crucial when it comes to measuring the performance of your business. If you can’t keep clear and accurate transaction record (Also see 3 Common Accounting Mistakes that Most Business Owners Make), then, you are preparing your business for failure!
Well, this may sound harsh, but it is the reality. All financial statements are prepared based on the information recorded in various journals and ledgers. The data recorded in these journals and ledgers is sourced from various documents such as payment vouchers, receipts, invoices, and more. If you are poor in bookkeeping, it means that you will use the wrong information to prepare the wrong financial statements, then, make wrong decisions regarding the business operation and lastly, lead your business to failure!
In Singapore, not every business owner is good at bookkeeping, but this does not permit you to keep messy business records. What if someone offered to keep very accurate and up-to-date business books? Wouldn’t you get time and channel all your efforts to other aspects of your business growth? Let’s delay no more, Contact us today for accounting services that can remove these burden from you.