What Happens When You Don’t Keep Your Bookkeeping Up-to-Date?

Sep 15, 2020 | Bookkeeping

How Hard is it to Keep Your Bookkeeping Up-to-Date?

 

As a business owner, you work long days and sometimes you work into the night. Even when you have the best of intentions, there’s no way to keep up with everything. At least you stay on top of the important things like production, marketing, and sales. When you have time, you catch up with annoying, not so crucial tasks such as being able to keep your bookkeeping up-to-date.

But have you actually thought about what happens when you don’t keep your bookkeeping up-to-date? Of course, that’s a question you probably don’t want to think about. If you do, you’ll realize that there are so many reasons why bookkeeping is more important than you think.

Downfalls When You Don’t Keep Your Bookkeeping Up-to-Date

 

Your cashflow becomes a big question mark

Bookkeeping documents your cash as it flows in and out of your business. It tracks your sales and how much cash you’ve earned. It tracks where the money goes and tells you how much cash you have available to run your business. If you don’t keep your bookkeeping up-to-date, you lose track of these things. Your cash flow becomes one big question mark.

You’ll have no idea who owes you or how much they owe

If by some chance you fail to track your incoming and outgoing funds, accurate bookkeeping can tell you where to find more cash. When you keep your bookkeeping up-to-date, you can run an Accounts Receivable report that tells you who owes you and how much. You’ll know when to expect more income or you can take measures to collect past due amounts.

You’ll lose track of who you owe

When you keep your bookkeeping up-to-date, you worry less about late payments, late fees, and juggling all of your bills at once. Your updated data can produce an Accounts Payable report that tells you who you owe, what you owe, and when you owe it. When you keep your bookkeeping up-to-date, you’ll have all of your creditor data at your fingertips. You can pay your financial obligations on time and maintain or improve your credit standing.

You won’t be able to qualify for a loan

Even if you don’t care about keeping your financial data organized and accessible, your bank does, especially when you need a business loan. Your business might be raking in cash. That doesn’t matter if you can’t prove it. When you keep your bookkeeping up-to-date and organized, your data can generate the Profit Statement you need to qualify for a commercial loan.

It will come back to haunt you at tax time

If you don’t keep your bookkeeping up-to-date, at some point you will have to play catch up. That usually happens around tax time because you know that the IRS doesn’t accept delay tactics or excuses. When your filing deadline is on the horizon, you’ll spend hours, or days or weeks documenting all the financial details you never got around to.

Let us Keep Your Bookkeeping Up-to-Date

At Goode Bookkeeping and Consulting, we’re bookkeeping professionals and we’re good at it. We know that bookkeeping is important so we perform all of the bookkeeping tasks you would perform if only you had the time (or the desire). We work remotely and virtually, so we’re never in your way. Best of all we keep your bookkeeping up-to-date for a very reasonable price.

Contact Goode Bookkeeping & Consulting

For more information about our bookkeeping and consulting services, call us at 860-659-6543 or complete our consultation form to arrange your free appointment.

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