Why Do I Need Bookkeeping?

Yes, if you are operating as a business,

YOU NEED BOOKKEEPING!

There I said… now let’s get over it and figure out why this is important.

Bookkeeping is defined by dictionary.com as the work or skill of keeping account books or systematic records of money transactions. Bookkeeping is a subfield of accounting and deals with processing and interpreting all types of financial information. This is an ongoing process and does not deal with auditing, taxes, or other types of accounting.

However, the reports generated by a bookkeeper are the foundation of all the other accounting activities.

Now let me address really quick a few of the pain points with bookkeeping. You will have to either give your bookkeeper access to your bank account or access to the bank statements.

Either way, yes he or she WILL BE IN YOUR BUSINESS!!

But let me tell you, you would rather the bookkeeper be in your business for the purpose of recording your transactions versus Uncle Sam for the purpose of auditing…

Another pain point I’ve encountered as an assistant getting my clients signed up for Bookkeeping services is cost. Let me assure you, bookkeeping is not where you want to cut cost by avoiding it. Bookkeeping can save you from driving yourself a loss at the year-end.

There are many reasons why you need to include bookkeeping in your business model. I will just highlight five of them:

1. Bookkeeping Helps You Budget – Bookkeeping is the tell-tale story of how your money comes in and how your money goes out. Budgets are important for you business allowing you to achieve your financial success.

2. Organization – It is imperative your financial records are organized and easy to access. This is handy when it comes to applying for grants, loans, or even attracting investors.

3. Track Profit and Growth – Why are you in business? To profit!! Right, so why wouldn’t you want to keep track of your profit from one month to the next? Bookkeeping makes this possible.

4. Strategic Planning – Do you want your business to grow? If so, then you need to make some tactical plans on how you will further develop your business. With the information you get from bookkeeping, you can focus on your short and long-term goals. You can also track results and adjust your goals accordingly.

5. IT’S THE LAW – I wouldn’t say more important than the first four important points but it is pretty important. You are required to keep financial records for your business. Don’t close the doors to your business just because you didn’t want to obey the law.

If you need assistance with bookkeeping services, Essence Clark Virtual Consulting offers these services in 10, 20, and 30 hours per month increments.

Visit www.essenceclark.com to review our services and book an appointment.