Ever been told your books are a mess? Not sure what we mean by that or why it’s important?
Generally, a complaint that your books are messy means that it is difficult to get an accurate picture of the business finances due to inaccuracies in the books – usually reflected on the balance sheet. This can be due to duplicate accounts, personal accounts listed in the business books, lack of reconciling liabilities and assets, receiving payments for invoices but failing to record bank deposits properly, failing to list liabilities and assets.
This is important from both a compliance and a managerial standpoint. If your books aren’t accurate, your tax preparer or tax planner will be starting from a false premise, which makes it impossible for them to provide accurate tax returns – resulting in expensive overpayments, or underpayments, interest and penalties. We don’t like that.
Further, you as the business owner will also not be able to make informed decisions about the business, because the business information is incorrect. That can cost you thousands in opportunity costs and lost profits!
When your books don’t make sense and you’re not sure what your business is doing, it’s time to call us at 801-692-0032. We can clean up your messy books and get your accounts in order!
Donna Harris holds a BSci in Accounting and is the owner of Bookkeeping Made Simple. She is currently pursuing her MBA and expects to complete that in June, 2022.
Donna Harris, BSci Accounting, MBA student, founded Bookkeeping Made Simple with the understanding that small businesses is the heart of the American economy. After offering to do books for a friend who said he didn't have enough work to keep someone in the office 20 hours a week, she recognized the need for an efficient, online system. She has 20 years of bookkeeping and accounting experience and is excited to help small business owners achieve their goals. She enjoys spending time with her family and traveling whenever possible. She also loves reading, hiking, camping, cooking, yoga, and fitness. A huge believer in lifelong education, she is currently working on her MBA.