Why Small Business Owners Need to Have and Review Accurate Financial Statements
Updated: May 30, 2019
Plenty of times I have heard from small business owners: “Why do I need to look at Financial Statements?” And the only statement that is known to have relative value is P&L Report (Income Statement). The truth is that Financial Statements can help you run your business more effectively and efficiently.
Here are just a few advantages:
1. One of the most important tasks for me as a bookkeeping service provider is to measure the performance of client’s business to be able to offer new strategy ideas, or offer the advice on changes that could resolve the issues before year end.
2. Accurate Financial Statements can help you catch costly mistakes ranging from being double charged to business overspending.
3. Regular financial reporting ensures that you are ready for stress free filing of your taxes because you already took advantage of possible tax breaks and deductions.
4. If a business owner needs capital from loans, financial institutions need to feel confident in the financial health of the business.
5. You are able to see where exactly your money went and if you have enough cash to expand your business.
6. You can track your outstanding invoices to make sure you get payments on time and track your bill payments to avoid late fees and penalties.
Those are just a few reasons why my service packages include monthly review of you Financial Statements. I take time to sit down with you and let you know about the things that I have noticed that look concerning and offer you the ideas to fix the arising problems. This way you have more information about the health of your business, which will help you make the right decisions going forward.