#1 You’ll make more money.
#2: You’ll pay less tax.
And then there are plenty of other reasons, such as:
#3 You’ll have a whole lot less stress, knowing exactly what is going on with your business.
#4 You’ll be able to spot employee theft a lot faster.
#5 You’ll be prepared for growth
#6 You’ll know what you really need to do to put more cash in your pocket.
The list goes on.
If you can’t produce a current and accurate financial statement within 30 days of month end, then you really don’t have a clue what is going on with your business. Without the financial statements, you have to track everything in your head. Now, granted, you may be an absolutely math whiz and able to keep track of complicated calculations in your head, but is that really how you want to spend your time and energy? Trying to track your business ‘by the seat of your pants’ is a sure way to doom yourself to always being a one man or woman shop. You may have a few employees, but you’ll never be able to leverage the information you will get from having accurate financial statements.
A client was looking at some cash flow shortfalls. What should he do? The answer is…it depends. Without financial statements, he might think his best choice is to make more sales. After all, that brings cash in the door. But what if his costs are out of control? What if one more sale means one more hire, and the excess capacity will eat into profit?
In this particular case, the client created almost $100,000 in annual cash flow simply by better managing accounts receivable (people who owe you money) and accounts payable (people you owe money to).
He would never have known the answer without having accurate financial statements and bookkeepers who could help him decipher the story.
The second reason to have accurate financial statements is you’ll pay less tax. That’s near and dear to my heart. Around this time of the year, I’m talking to clients about how they can pay less tax. My first question will be “How much money have you made so far?” Without a financial statement, none of us have any idea. And that will almost always mean that you pay too much in taxes.
Want to make more money and pay less tax? Make sure your bookkeeping is current and that you have a good system (bookkeeper) who make sure it stays that way!
To have a Client Representative get in contact with you please call Richard Richard@USTaxAid.com at 888-592-4769.