3 Reasons Why Your Business Will Fail Without Accounting

Let’s face it, there’s nothing sexy about numbers unless it’s being deposited into your account with a lot of dollar signs. However, you need to know where it came from and how much of it is expected to go out. You may think balancing your check book is enough, but I’m here to tell you it’s not! So here are the top 3 reasons why you need proper accounting for your business.

1.       Saves time and money during tax season. Without accounting software or some type of accounting spreadsheet, the average business owner spends hours to days organizing receipts during the tax season. And if you hired an accountant, they charge about $50 per hour to do the same. Do yourself a favor and record these things as you go.

2.       Helps you determine what works and what doesn’t work. Recording your income and expenses is a good way to see certain trends. You may notice that you’re spending too much and barely making a profit. Good accounting software can convert the information into graphs and charts to see if from different perspective. If you use an Excel accounting template like the Royalty Factor, you can easily take the information and convert it yourself.

3.       Helps you get a loan. Banks love businesses who keeps accurate records. This is how they determine how profitable you are and whether you’re able to pay back the loan. If the only thing you have to show is your bank records, they’re not going to take you serious as a business owner.

There’s several accounting software out there that will help your business be successful. Excel templates like The Royalty Factor can be downloaded from The Insiders Book Club

For more tax information follow @TamaraKnowsTaxes