5 Ways Bookkeeping Can Help your Business Succeed
You think you’re doing everything possible to make your business succeed, but sometimes it’s what goes on behind the scenes that matters more. Keeping proper books with separate personal and business accounts is the key to your business’s success.
- Less Stressful Audits
Audits and stress-free don’t usually go in the same sentence, but when you keep proper books, they can. If you have your personal and business expenses and money transfers in the same account, you might not get as many deductions as you’d hoped. You must be able to differentiate between personal and business funds to make any potential audits less stressful.
- More Informed Decisions
You can’t tell how your business is truly doing when you have personal finances in your business account and vice versa. Separate the two and you can make much faster and more profitable business decisions without being clouded by your personal finances too.
- Provides a Corporate Veil
If you run your business as a corporation, everything MUST be separate. Having a separate bank account for your business shows that you understand it’s a separate entity and will treat it as such at tax time.
- Less Stress
Stress and running a business go hand in hand, but you can lower the stress by maintaining your books regularly. Keeping separate books makes it easy to make decisions, understand how your business is doing, and what’s expected of you at tax time. Rather than spending hours burning the candle and both ends trying to decipher between business and personal expenses, you can do it from the start and save yourself time.
- Save on Taxes
This is the largest reason most people keep separate business and personal books – tax savings. Why pay more than you must? If you don’t keep separate books, though, it’s impossible to keep your money straight and you’ll give Uncle Sam more money than necessary.