There is a multitude of reasons why accounting accuracy is so important for a small business, but probably the number one reason as to why your accounting practices matter is first on the list below.
- Maintenance of accurate records that satisfy IRS requirements.
- Knowing your true financial status in order to make important business decisions.
- Meeting employee payroll obligations.
- Ensuring cash/credit flow and material support to keep business operations running smoothly.
Business owners have countless obligations and many prefer to focus on the more creative or personally rewarding aspects of their business. However, any organization that does not accurately attend to their accounting practices can run into serious trouble with the IRS. In fact, there is probably no greater external entity that has such a vested interest in your small business than the IRS, so it is very important that your accounting and payroll practices meet all tax requirements.
Small business owners need to tend to the everyday functions of their organization, but they also need to plan for the future, to grow or least sustain their company. Without an accurate accounting picture of where your organization stands with regard to debt, sales, payroll obligations and the like, it is impossible to design an accurate plan to sustain or grow your organization.
Both employees and customers have certain expectations from their interaction with your company. Employees expect to be paid promptly and accurately. Customers expect to receive their items or services on time and are not interested in delays in production that occurred because accounts payable obligations weren't met.
Here at LUXA Enterprises, we understand the business side of your business. We offer our accounting expertise so you can focus on the reasons you started your own company in the first place. For more bookkeeping tips and information on how we can offer efficient and accurate accounting and payroll solutions for your small business, please contact us.