Accurate bookkeeping is important to the success of any business. Any financial transaction should be officially recorded; important transactions include any receipts of purchases/expenses, tax records, financial statements and official ledgers, etc. It’s vitally important that a business keep accurate records, and a business that’s run without official documentation could fail.
One of the many reasons for accurate bookkeeping is that accuracy and diligence help to prepare/protect your business in the event of an audit. If the IRS does choose to perform an audit, then you will want all of your financial documents in one place. Sometimes, an audit happens because of something small and superfluous, and accurate bookkeeping can quickly and rather painlessly clear up any supposed discrepancy. And the quicker an audit takes place the better: an audit takes you away from the importance of your own work, and the more prolonged the audit the longer you will have to deal with anxiety and stress because of it.
Also, remember that accurate documentation helps at tax time. Every dollar counts—no pun intended—and an accurate record of every dollar spent matters. Receipts and invoices are so important, and not only so that you can track expenditures, but if the IRS ever has a question about a tax time deduction total, you’ll have the evidence to back up the expense. And when it comes to tax season, you’ll have all the required paperwork ready to show your accountant at Practical Taxes.
Your accountant at Practical Taxes can help with bookkeeping. A quality, experienced accountant can both assist you in accurate booking and provide you with quality advice going forward. So, if you would like to speak with your tax professional at Practical Taxes about bookkeeping services, or any other matter related to your business accounting needs, then call the experts at Practical Taxes today.