How Can Bookkeeping Help You
Run and Grow Your Small Business?

As a business owner… Bookkeeping is your Super Power!!!

Want your small business to reach the sky and soar? Then, bookkeeping help is your secret weapon.

As bookkeeping and accounting skip hand-in-hand, merrily and lovingly…

They give you a thorough awareness into the health of your business. And help you answer tough questions, such as:

Where should I focus on business improvements?
Which changes will grow my business towards my vision?
What should I do to compete in my industry?
Which business units (or activities) are earning the most money? And which are triggering unnecessary expenses?
Which customers owe me money? And how much?
Which vendors are raising prices behind my back? And which vendors are giving me the best deals?
Overall, how profitable am I? What is my net income (revenues minus expenses)?
When are taxes due? Am I legally compliant?
Can I save money on my small business taxes?
Has employee fraud occurred under my nose? How can I detect it?

Now, let’s go in. (Curtains open. Hands clap. Woo-hoo’s echo.)

What exactly is this thing called bookkeeping?

Bookkeeping?
“What You Talkin’ ‘Bout Willis?!”

Bookkeeping falls under the umbrella of accounting. It lays the foundation for accounting activities.

But it’s a specific and detailed activity all its own.

Both bookkeeping and accounting are very important, legal work.

Difference Between Bookkeeping and Accounting

Imagine you utilize the services of both a bookkeeper and an accountant.

Your bookkeeper helps to record and organize all the financial and non-financial transactions that transpire every day in your business.

Your accountant follows up by analyzing all these recorded transactions. Then, he or she produces financial statements and reports to aid in decision-making – for yourself, management and other stakeholders (such as customers, investors, vendors, employees, community leaders, whomever).

Bookkeepers and accountants work together to keep control of your financial data.

Bookkeeping is an internal process within your business. Accounting is both internal and external.

Bookkeeping Helps Keep Track of
Financial and Non-financial Transactions

Financial Transactions

Financial transactions are those which have a monetary impact on your small business accounts – specifically its assets, liabilities, equity, income and expenses.

Besides affecting your business position on financial statements, your business has a legal obligation to keep clean financial records.

So, this daily, record-keeping activity is critical for business intelligence and business survival.

Examples of financial transactions include:

Payment of wages to employees
Payment of invoices to vendors or independent contractors
Purchase of goods or services from vendors or independent contractors
Shipment of goods to, or performance of services for, customers

Non-financial Transactions

Non-financial transactions do not have a monetary impact on your small business assets, liabilities, equity, income or expense accounts. And there is no legal obligation to record them.

But… It is in your best interest to track them.

So… You can analyze how well your business is doing by itself and compared with industry competitors, protect your business from global surprises, eliminate the threat of fees and penalties posed by legal noncompliance, etc.

Examples of non-financial transactions include:

Transference of funds from one account to another
Addition of a new employee to payroll, or an employee change of address
Deletion of a vendor from your approved supplier list
Tax and business activity compliance due dates
Tracking of your business’s daily stock prices (when you go public)

Importance of Bookkeeping

The overall importance of bookkeeping is priceless.

Done daily, bookkeeping will reap the most insightful and timely benefits.

Bookkeeping reports clear your mind and give clarity. You will experience laser-focus. You’ll have more free time to run and grow your small business.

An added financial benefit is that bookkeeping lowers your tax preparation costs. This is because you maintain complete bookkeeping records – which are ready for the tax accountant to pull information from, and to submit to the IRS.

Bookkeeping helps you accomplish your small business plan. Proper accounting and bookkeeping help to guide the mission steps…

Towards your ultimate vision.

Get ready to make smarter business decisions. The life of your business will be on fleek (on point).

Bookkeeping helps you set yourself up… To reach the level of success you’ve been dreaming of…

The small business success you truly deserve!

Props: “What you talkin’ ‘bout Willis?!” is a famous phrase blurted out by character, Arnold Jackson, on Different Strokes (the 1978-1986 TV series).