A business without paper works is not complete. The capacity of the human brain to memorize figures and other similar numbered items isn’t enough. You would definitely a record of all your transactions for safe keeping and future references. That’s why bookkeeping is very essential.
Without bookkeeping you won’t be able to have a clear picture of what’s going on with your financial status. Having all these records in an organized manner can do a lot of wonders and it will eventually make your business transactions smooth sailing.
There are several reasons why a business should have an accurate bookkeeping even though it would mean hard work. Because of it you would be able to fasten all the transactions that you needed to complete during tax-paying days. They would surely be asking a lot of supporting financial documents that you can readily produce if you have bookkeeping.
If you want immediate answers like “Am I earning today?” or “Have I been paying too much expenses?”, then you’d probably have bookkeeping. They’re basic yet essential questions of a typical businessman. It’s all going to be about what’s going on and if the business is still running smoothly. Because of systematic bookkeeping you would be able to set attainable goals and eventually formulate solutions accordingly if in any case problems will arise.
With bookkeeping, you are guaranteed that everything is transparent especially if you have a business partner. The other party deserves to know what’s going on and there’s no other way but to show the bookkeeping output and it’s vice versa.
Bookkeeping system will be made of source documents, book of accounts, subsidiary ledgers and financial statements which are all considered to be the backbone of your business venture. They aren’t just simple documents and its content will serve as your leverage in the entire process.
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