Businesses large and small are focused on generating profits. While selling your product or service is integral to your business, managing your finances is just as important. Getting behind on bookkeeping can make it difficult to have the financial insight necessary to make effective business decisions. Catch up bookkeeping can be highly beneficial if you are behind on managing your business’s finances. Below you will find the benefits of catch up bookkeeping.

Benefits of Catch Up Bookkeeping

Catch up bookkeeping can make a major difference in your business. Consider the following benefits and seek out quality catch up bookkeeping services if you are behind on your business finances.

Reliable Opening Balance:

Having a reliable opening account balance can provide you with peace of mind. Your opening balance is the amount of money in your bank account at the start of a new financial period. This is often the start of the month but it can be more or less frequent depending on your business. Because debits and credits can come and go at different times, an opening balance may not reflect the actual amount in your account at the beginning of the financial period. 

For example, if you have $100,000 in your business account, but know that $20,000 worth of checks will be debited, your opening balance is $80,000. Having reliable accounting software and financial statements can help you make effective financial decisions based on credible data. Catch up bookkeeping is effective in getting your financial information up-to-date. However, it’s important to create and follow your new system to ensure your financial data stays current. 

Concept image of people looking for financial accuracy.

Financial Accuracy Via Reconciliation:

Bank account reconciliation involves confirming that your accounting records match the information in your bank account. This gives you an opportunity to find and correct any bookkeeping errors. This is usually done before your financial statements are finalized to ensure accurate recordkeeping. It’s best to reconcile your accounts at least once a month. This is beneficial for both your business finances and ensures that you are accurately reporting your business income to the IRS. If your business finances are behind, utilizing catch up bookkeeping can help you get current and properly reconcile your accounts.

Cash Flow Management:

Concept image of cash flow freedom.

Catch up bookkeeping can have a direct impact on your cash flow. It can provide you with an accurate perspective of your cash flow so you can make more informed financial decisions. Catching up on bookkeeping can often reveal financial tasks you missed, including past due invoices. Getting a deeper understanding of your cash flow needs depends on accurate and up-to-date bookkeeping. Feeling confident about your business’s cash flow is invaluable to its success.

Accurate Net Income Numbers:

Understanding your net income depends on how current your financial records are. Your net income is the amount of money your business makes after all costs and expenses. Knowing the net income numbers for your business can help you make better financial decisions and increase your bottom line. This is also beneficial when you apply for funding as creditors and investors will need accurate financial data, including your net income numbers. Catch up bookkeeping at Indevia Accounting can help increase your profitability and meet loan and investor requirements.

Tax Compliance:

Complying with your business taxes can save you time and money. It’s important to pay the right amount of taxes on time to avoid issues with the tax authorities. Keeping accurate financial records can ensure that you don’t under or over-report your earnings. It can also help you take advantage of the applicable deductions. Catch up bookkeeping can help you maximize your tax return and be fully prepared once tax season comes around. Contact Indevia Accounting today to learn more.

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