Complete and accurate financial record keeping
is crucial to your business success. Good records provide the financial
data that help you operate more efficiently. Accurate and complete
records enable you to identify all your business assets, liabilities,
income and expenses. That information helps you pinpoint both the strong
and weak phases of your business operations.
Moreover, good records are essential for the preparation of current
financial statements, such as the income statement (profit and loss) and
cash-flow projection. These statements, in turn, are critical for
maintaining good relations with your banker. Finally, good records help
you avoid underpaying or overpaying your taxes. In addition, good
records are essential during an Internal Revenue Service audit, if you
hope to answer questions accurately and to the satisfaction of the IRS.
To assure your success, your financial records should show how much
income you are generating now and project how much income you can expect
to generate in the future. They should inform you of the amount of cash
tied up in accounts receivable. Records also need to indicate what you
owe for merchandise, rent, utilities, and equipment, as well as such
expenses as payroll, payroll taxes, advertising, equipment and
facilities maintenance, and benefit plans for yourself and employees.
Records will tell you how much cash is on hand and how much is tied-up
in inventory. They should reveal which of your product lines,
departments, or services are making a profit, as well as your gross and
net profit.
The Basic Record keeping System
A basic record-keeping system needs a basic journal to record
transactions, accounts receivable records, accounts payable records,
payroll records, petty cash records, and inventory records.
An accountant can develop the entire system most suitable for your
business needs and train you in maintaining these records on a regular
basis. These records will form the basis of your financial statements
and tax returns.
- See more at:
http://sbasgroup.com/frequently-asked-questions.php?item=141&catid=29&cat=Recordkeeping:%20Frequently%20Asked%20Questions#sthash.83E3tTqq.dpuf
We at Small Business Accounting Solutions LLC, work closely with small
business owners in Milwaukee, Waukesha, Racine and Washington counties.
As a "one-stop-shop", we provide our clients with complete Accounting
services, Business and Individual Income Tax preparation, Payroll
services, Quickbooks training and more!
Small Business Accounting Solutions, LLC
1025 S Moorland Road Suite 500
Brookfield, WI 53005
Phone: (262)547-6000
http://www.sbasgroup.com
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