The Effects Of Bad Bookkeeping On Businesses
Bookkeeping is one of the most important processes of your accounting and financial department. Bookkeepers record, organize and maintain a company’s financial transactions; including purchases, sales, payments, receipts and earnings. All types of enterprises, including startups and large businesses, need access to accurate, complete and up-to-date bookkeeping. Poor bookkeeping can hurt your business in several different ways:
Bookkeeping is one of the most important processes of your accounting and financial department. Bookkeepers record, organize and maintain a company’s financial transactions; including purchases, sales, payments, receipts and earnings.
All types of enterprises, including startups and large businesses, need access to accurate, complete and up-to-date bookkeeping. Poor bookkeeping can hurt your business in several different ways:
If you’re having bookkeeping issues, your company can face debt problems. Missed or late debt payment can take a toll on your business credit report. Not to mention, late debt means excessively high interest rates and unfavorable payment terms.
Maintaining current, accurate cash flow is crucial for your bookkeeping department. This will allow you to keep track of all receivables, payables and the company’s financial situation (cash and credit) in general.
Poor bookkeeping can cause a host of legal problems for your business. Your creditors can sue your business if you don’t pay them. Also, you can get in trouble for improper deductions and late tax payments. Late tax filing leads to heavy penalties.
Sales and Profits
Improper bookkeeping can cost your business significant amounts of funds. If you don’t pay your suppliers on time or pay incorrect amounts, that’s going to hurt your company’s financial credibility.
You might end up losing your suppliers, which will affect your production, output and sales. Don’t be shocked if your customers go to your competitors.
Accountants use bookkeeping data to make financial reports, including budgets, general ledgers, balance sheets, cash flow statements, profit-and-loss statements, etc.
Without bookkeeping, you won’t be able to make financial decisions. Bookkeeping can help you identify financial strengths, weaknesses and opportunities for your business.
How to avoid poor bookkeeping
In order to record all your financial transactions daily, you need access to workable bookkeeping processes and systems. At Sierra Pacific Consulting, we offer customized accounting and bookkeeping services, nationwide.
Our team develops comprehensive, thorough, reliable bookkeeping processes that meet your individual business needs. To make bookkeeping easier, painless and manageable, we assist companies implement and integrate latest accounting software, such as QuickBooks.
Our services include, but are not limited to, accounts payable, accounts receivable, payroll, accounts reconciliation, Corelytics integration, expenses export from ConnectWise to QuickBooks, customer and supplier information export from ConnectWise to QuickBooks and invoicing.
P.S. whenever you’re ready, here are 3 ways I can help you help grow and scale your IT & MSP business:
- Join our community of ConnectWise users and industry experts here: www.cwboss.com It’s the easiest way to plan ahead for growth, learn helpful tips and join weekly educational workshops.
- Learn how to be the #CWBOSS of your business by joining our weekly workshops here: https://bit.ly/2XmaM6O
Every Thursday our CEO & President, Adam Bielanski, hosts a 30 minute workshop around making ConnectWise work for your business
- Work with me and my team privately: If you’d like to work directly with Adam and the team to actually get you out of the weeds and into your flow, schedule a 15 minute Triage call here: https://calendly.com/adambielanski/15min