Bookkeeping Is Vital to the Success of Small Businesses

CHICAGO, Nov. 29, 2010 /PRNewswire/ -- Accurate bookkeeping is important for all companies; however, solid bookkeeping is especially crucial for small business. This is true for daily operations, annual tax time and everything in between.

Current ledgers will account for the funds flowing in and out of the company and allow for key people to make decisions on a daily and quarterly basis. Small business bookkeeping accurately indicates whether a customer is carrying a balance on their line of credit or is past due on any payments. A company needs this information to effectively respond to patterns of late payments and nonpayments. If these are not monitored, they will eventually hamper potential growth or worse, hamper the company's ability to stay in business.

Small business bookkeeping is needed to determine financial stability. Gross profits must be known to determine projections and decide if prices for services and products are accurately priced for growth. This information is also needed for tax time, whether they are paid quarterly or annually. Accurate income and expenditures are needed to determine the tax liabilities of a company to the IRS.

Another important reason to maintain accurate records is when a small business needs to borrow funds for specific expenses or there is an opportunity to grow. Lenders require solid bookkeeping so they are able to understand the solvency of a business before determining whether they can write a loan. Bookkeepers are tasked with keeping track of the money and must also be able to figure whether an owner will qualify for funds in the future. For small businesses that need outside funding to stay in business, they must regard accurate bookkeeping as a top priority.

About Bookkeeping.net

Bookkeeping.net offers a free service that connects businesses with bookkeeping professions to manage their specific needs. You can find the perfect fit for your business, whether you are interested in payroll processing, accounts payable, accounts receivable, tax reporting, bank reconciliations, financial statement creation or simply general bookkeeping. Regardless of your needs, you can learn more about the bookkeeping services available and find the right professional for your business by visiting the website today!

This press release was issued through eReleases(R).  For more information, visit eReleases Press Release Distribution at http://www.ereleases.com.

SOURCE Bookkeeping.net

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