Seriousness in processing bookkeeping is one of the guarantees of success of the business that you are starting. Aside from being an attempt to find out the company’s losses and profits, bookkeeping is done correctly will minimize the risk of losing assets in your company. Debt matters, accounts receivable, as well as obligations arising from your business, such as taxes will be easier to process with these books. Therefore, extra effort is needed to maintain and separate your personal bookkeeping funds and your business funds.
That way, you can avoid potential lawsuits because you put business and personal funds together in one bookkeeping. To be clear, here are five important reasons for you to have separate accounts and books for each business.
Benefits of Bookkeeping for Business
1. Business Protection of the Company
Making separate bookkeeping is a form of your awareness that the company is a different entity. That makes the protection of the company stronger. In addition, separate checks and bookkeeping will also encourage you not to confuse personal data and business funds. If you have already done that, it is a sign that you have recognized the company you are building.
2. Tax Savings
Separate banking will improve bookkeeping procedures, prevent invoices that are not clear in origin, and provide better records for processing your taxes. Poor bookkeeping will complicate the process and burden you with the amount of tax that must be paid. So why don’t you make it clear that your tax costs are easy and clear?
3. Audit Protection
Having a separate account will increase your chances of successfully passing the audit without consequences. Auditors will often prohibit expenses when personal and business expenses are mixed in one account.
4. Reducing Stress
When you don’t take bookkeeping seriously, it can result in books being disorganized and looking messy. That effect will continue on you who will feel stressed to take care of it. Furthermore, it will make you fail at the target you have set.
Having separate accounts for companies that are fairly new will save you time and money in the long run. However, it also needs careful consideration on the price and funds you have. If you make the right decision, it will be very easy for the future.
5. Making the Right Decisions
If you already have a separate account, that means you have started a better bookkeeping, expense tracking and budgeting process. The process leads to quality decision making. If you really hope to become a successful business owner, it means you must have an accurate record. In addition, you can also project success in the future by continuing to see your business opportunity from today.
Company Bookkeeping System Options
After knowing the reasons for the importance of bookkeeping, the next step that can be taken is to determine the system . Here are some options that can be applied to your company.
1. Processing Own Bookkeeping
Perhaps this option is causing concern for some people. Or it could be, this is one of the reasons why your current books are not going well. Even so, maybe you are still reluctant to entrust this work to others. So, the thing you need to do is start to realize and take a few hours a week to learn the basics. Believe me, this ability will not be in vain even if someday you have a partner to help process it.
2. Hire Family Members
This is the right option if you want to share with relatives, cousins or other family members. If your brother is a teenager or young adult, it is an opportunity for you to share your knowledge by teaching him business. In addition, you also have the opportunity to help him to earn financially. But more importantly, they will learn about the heart and soul of small family businesses by keeping books.
3. Involving Beginners
A beginner in question is a student who wants an internship, or indeed a new accountant at an affordable price. It makes them gain work experience as well as income. However, that doesn’t make you think too much about funding for bookkeeping. Getting them to work will also give you more time to do other things. That way, you can more freely run a business and increasingly make money.
4. Employ Someone at Home
It’s not hard to find a student or beginner who is willing to take over the management of your books. This person can work part time or full time for you. You can make an agreement on whether he needs to come every day or only a few times a week to enter data and print reports. It’s best if you keep an eye on the work. Watching it at home will feel lighter than you have to do it yourself every day.
5. Hiring An Accountant or Tax Professional
Many business people have used the services of a professional. Many conveniences are offered by choosing this option. Having a very skilled accountant doing bookkeeping every day makes you feel safe. In addition you will also get benefits in the form of convenience for tax planning, quarterly and annual reports. This option might seem more expensive. However, the value of quality long-term planning will bring in income that far exceeds the cost of a reliable professional.
