The Importance of Good Accounting Policy & Procedures
Updated: Jun 3, 2018
While you’re still small is the best time to establish robust processes and procedures to accurately record and analyze your business financial information. Small business generally concentrates most of their effort on producing their product or service and building a strong customer base. They may have limited time and resources to devote to bookkeeping. While they probably understand the importance of recording sales and expenses, they limit their efforts to maintaining a list of deposits and checks. They may do this in a manual checkbook or in a software program such as QuickBooks.
I’m sure you’ve heard the story of the business owner who at tax time, brings a shoebox full of receipts to their tax preparer expecting them to somehow make sense of it all and get them a large tax refund. As your business grows, a failure to establish good accounting processes and procedures and to accurately track and analyze cash inflows and outflows leads to ever greater inefficiencies in cash management. The ability to procure funding for your business with a line of credit or a loan may be limited by a failure to provide accurate financial statements.
This is where we come in. At BookSmart Accounting & Finance, we are prepared to provide you with the tools you will need to accurately and efficiently record, report and analyze your company’s financial information. We will show you how to use this information to determine the profitability of your operations. We are also able to provide you with budgeting and financial analysis to further allow you to understand and control your company’s cash flows.
We can assist you in identifying, recording, analyzing and reconciling your financial information. Accurate and timely financial information will allow you to maximize your company’s growth potential. Good cash controls equal efficient operations and use of financial resources. How much or how little of our company’s expertise you decide to use is up to you. We are equipped to provide you with consulting, training and/or actual bookkeeping services. Let our business help you grow your business.