Why bookkeeping matters

Every business needs to know how much money it makes, how much it spends and what it owns and owes. Bookkeeping is how you find out.

Bookkeeping means recording financial transactions accurately and consistently. Accounting uses those records to prepare financial statements, file taxes and make decisions. Good accounting depends on good bookkeeping.

Clear records help a business owner:

• See whether the business is actually making a profit
• Prepare tax returns and keep receipts organized
• Spot problems early, like unpaid invoices or rising costs
• Apply for loans or grants with real numbers