Determining whether businesses are successful requires business owners to keep track of, analyze, and record all financial transactions in that company’s books, usually in the form of a computer spreadsheet. Let’s learn more about small business bookkeeping in Atlanta, GA.
What Is Bookkeeping?
Accounting is an essential, always-necessary business function that consists of making sense of financial transactions and keeping track of them, consulting decision-makers about what decisions should be made in the name of keeping financial performance in a good place, performing both internal and external audits, and so many other things. Bookkeeping is simply a part of accounting that consists of collecting financial information and organizing them in “the books,” or the general ledger of all financial activity. Bookkeeping is very much the simplest part of accounting.
Bookkeeping Is Necessary for Avoiding Tax Issues
Accurate small business bookkeeping in Atlanta, GA, is necessary for keeping fees, fines, and audits from the Internal Revenue Service (IRS) at bay. Failing to keep your company’s books in an accurate, timely manner results in your company’s decision-makers unable to determine how much taxes they actually owe. This can result in legal issues with the IRS if your business is audited or if a company insider becomes a whistleblower.
Financial Statements Are a Big Deal
Small businesses use financial statements to inform investors, decision-makers, owners, and directors about the current financial position; monthly, quarterly, and annual performance in terms of profit and loss; and the current condition of that business’ cash flows.
