How do you look at your bookkeeping? Do you think of bookkeeping as a simple chore that you can leave for last? Profit Financial Services, a bookkeeping services company in Hamilton, counsels clients to be on top of their company’s bookkeeping and take it very seriously. Being laid back with your bookkeeping can lead to negative results.
Inaccurate bookkeeping could turn off potential customers, suppliers and creditors. In some cases, bad bookkeeping may even prompt a number of stake holders to take legal action.
Bookkeeping that paints the wrong financial picture of your company can lead to one of several unwanted scenarios:
- A bank or financial institution may refuse to lend you money.
- Potential investors may not want to invest in your company because they do not find your financial reporting reliable.
- You may not be settling your financial obligations on time since your “Accounts Payable” books show otherwise.
- You may be forced into bankruptcy when a large customer pulls out his business due to your unreliable bookkeeping.
- You may unknowingly be owing the government large sums of money when your bookkeeper erroneously computes the payroll tax.
- You might be paying hundreds of dollars with bounced cheque charges.
The examples above happen all the time. Profit Financial Services, a bookkeeping services firm in Hamilton, notes that these failures could have been easily avoided by paying more attention to bookkeeping.
Bookkeeping is not a matter of posting numbers on a ledger; it is telling your stake holders your daily financial transaction story. An inaccurate story can make you or other interested parties take a wrong action.