Bookkeeping Advice for Business Owners Part One
BOOKKEEPING IS CRUCIAL TO YOUR BUSINESS SUCCESS Bookkeeping is the process of collecting, filing and organizing, supporting financial documents in order to record transactions efficiently in your bookkeeping system. Experts have identified lack of proper bookkeeping as one of the causes of small business failures. Thus, by keeping proper business records, you are preparing for the success of your business. The importance of bookkeeping to your business cannot be overemphasized. Below are five reasons you want to maintain proper records of all your business financial transactions. 1. It makes the preparation of financial statements easy. Financial statements provide you with important information like your business' assets, liabilities and equity. They provide you what your business' net profit is for a specific period. Accurate financial statements are required by banks to determine your credit-worthiness when you wish to obtain a business loan. 2. It allows you to