Operating without record’s is like driving without brakes – CRITICAL – both are necessities. You may be thinking, “if my business takes in enough money, all these paperwork matters will resolve themselves. If they don’t, I’ll hire someone to clean them up later.”
PLEASE THINK TWICE ABOUT THIS!
How frequently you do your accounting can affect your company’s survival rate:
Frequency
Survival Rate
At Least Monthly
79.7%
Quarterly
71.5%
Half-yearly
49.9%
Half-yearly
36%
How good your records are kept can also affect your company's survival rate :
Accounting Records
Survival Rate
Excellent/Good
63%
Average
49.8%
Inadequate
20.1%
Poor/Non-Existent
2.5%
An accurate bookkeeping system is also crucial for preparing your annual federal and state income tax returns, filing sales tax and/or payroll and taxes in a timely manner.
Take record keeping seriously. If you get only one thing out of this article, go away knowing that ignoring your books is inviting disaster. If the IRS ever audits you or your business and finds insufficient records or significant mistakes in your bookkeeping, it can disallow significant deductions. The IRS can also impose fines and penalties, possibly forcing you out of business and wiping out any savings as well. Maybe you feel you can’t afford a bookkeeper when you’re starting out. Typically, bookkeepers charge $30.00 to $50.00 per hour and can take care of a small business for as little as $125.00 to $250.00 a month, leaving you with more time to focus on your core business.
DO YOUR HOMEWORK - Don’t just hire anyone claiming to be a bookkeeper. Check references and learn enough about your records so that you can see the bookkeeper knows her stuff!
R&D Legal Bookkeeping, Inc.
79 Windermere Avenue
P.O. Box 1265
Greenwood Lake
NY 10925email:radmin@rdlegalbookkeeping.com
Phone: 845-477-2728
Fax: 845-477-2793
Serving the Rockland / Orange County and Northern New Jersey Area.
