Monitoring Your Accounting
Four Reasons for Keeping Tabs On Your Business Finances
Provides Better Focus On Your Business
You probably have a long to-do list. Categorizing your transactions on a regular basis will show you were your money is being spent and free time to use your energy to manage your business.
Monitoring Cash Flow & Finances
Using an app that reports transactions from your business bank and business credit card accounts without logging into your bank account will give you a picture of where you stand financially. Apps can produce a balance sheet and income statement for specified periods. Managing and accessing your financial information will help you make better informed decisions.
Spend Less Time On Bookkeeping
Keeping your finances up-to-date can reduce the chance of misclassifying transactions. Misclassification can happen when you rush to catch-up on your bookeeping or you have possibly forgotten for what the transaction was made. So it's important to frequently monitor your finances. You will be better informed which will help you make the right business decision, when needed.
Save On Accounting Fees
Sloppy bookkeeping can incur higher accounting/CPA fees if time is spent sorting through your records at tax time. So it's important to do a good job in keeping your records organized and up-to-date. Turning over well-organized and accurate records will keep you from incurring additional charges but also free-up your CPA's time to provide more valuable advice.