Did you know that poor bookkeeping, or lack thereof, is one of the top reasons small businesses fail? It may not sound like the most exciting thing, especially if you don’t consider yourself a “math person”, but let’s face the facts, bookkeeping is essential for the success of any small business. Here at Vyde, we believe that each small business has the potential to succeed with the right tools, mindset, and organization. Let’s talk about how bookkeeping makes that possible.
Why is Bookkeeping Important?
If you’ve ever been on a road trip, you understand the importance of a map. It identifies landmarks, turning points, and other important information to help you smoothly navigate your journey. Bookkeeping functions in the same way for a small business. It helps you see where your business is going and identify any bumps or turns ahead.
One of the best ways to prepare for the future is to look to the past. Doctors examine past medical records or family health history in order to better diagnose a patient just as small business owners should examine their past and current financial records in order to pinpoint a problem within their business. Identifying the problem becomes much easier with accurate, clear, up-to-date statements. By looking in the rear-view mirror and seeing your profit and loss and balance sheets, you better understand what to budget and prepare or as your small business grows. You can start identifying patterns and trends in your cash flow.
Do you dread tax season? With good bookkeeping, you won’t be scrambling when the time comes to file. By keeping your records straight through the year you enable a smooth and simple process to not only file but make sure you get the best return possible.
Who Can Help?
In addition to that, there are a handful of people who are interested in your financial statements. They want to know exactly how financially organized your business is. The IRS, customers, lenders may request a copy of financial records and if those records aren’t organized or up to date, it negatively reflects on the business and risks a decrease in cash flow. When a business is organized, it shows the world can trust you. Bookkeeping gives you an overview or a snapshot of your business and helps you keep tabs on growth and profitability.
Now you may be thinking “Ok, I see that it’s necessary and very helpful, but where do I start?” That’s why we’re here! All you have to do is connect your business account to our software, and we’ll do the rest. Your assigned bookkeeper will handle your business’ books and compile all that information into an easily understandable report. With how essential bookkeeping is to the success of your small business, it makes sense to prioritize it and put a lot of effort into making it happen. Let us put in that effort for you. We’re here to help you and your business succeed. Click here to visit our website. Check our our Bookkeeping Guide for more details.