Why Keeping Organized Financial Records Pays Off
Did you know that maintaining accurate accounting records can help your small business cash flow?
Cash flow is the lifeblood of a small business. What would you do without money in the bank when you need it? No one wants to be in a tight spot like that. There’s lots of advice out there on managing and improving cash flow, but the best thing you can do is stay organized.
“Keeping accurate records is integral to managing and growing your business,” said Thomas Walsh, a certified financial planner with Palisades Hudson Financial Group‘s Atlanta office. “Proper accounting can be tedious work, but it provides insight into the health and viability of your business.”
Complete and accurate records mean you’re prepared when you need extra funds to grow or reinvest in your company. “Businesses that have accurate and detailed records will find it easier to borrow funds and raise capital from investors,” Walsh said. “Acquiring a small-business loan or line of credit can help small-business owners effectively manage cash flow.”
But that’s not the only benefit you’ll reap. You’ll be especially grateful for your meticulous record-keeping come tax time. “All company records, state filings and tax filings must be properly maintained to ensure available income tax deductions and credits are fully utilized, leaving more cash flow to remain with your company,” Walsh pointed out.
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