While owning a small business comes with a lot of responsibilities, one rarely discussed at any length is bookkeeping. But keeping all of a business’s paperwork organized and accessible—including revenue records, receipts, and other financial statements—can have a major impact on success and growth.
Jarad Hunter, owner of JHunter, shares a few reasons why bookkeeping is critical to a thriving small business.
Prepare for tax season: Keeping track of all your revenue and overhead is the best way to ensure that you’re fully prepared when April rolls around. Many things can trigger a small business audit, and you want to have everything in order for the odd year when an audit does arise. It will mean the difference between being thrown into a time-consuming, costly panic and the calm assurance that you have exactly what you need.
Sharpen your business model: Reconciling all the money that’s coming in and going out is useful for more than just tax preparation. By bookkeeping in this way, you’re able to compare spending and revenue with past years, keeping an eye on where you’ve grown and aspects of your business that can still be sharpened. Having a part-time CFO or another bookkeeping service also allows you to compare your business model with industry standards, opening up all sorts of opportunities for your business to improve.
Acquire business loans: If you ever approach a bank looking for a business loan, you’ll almost always be asked for your financial statements. Keeping meticulous records makes this kind of request easy, and puts you and your business in a more favorable light to potential lenders.
For all their bookkeeping and tax consultation needs, small businesses and family-owned operations in Greater Cincinnati and Hamilton County turn to JHunter. With experience serving a wide range of industries, including automotive repair, agriculture, manufacturing, and construction, Jarad has the expertise to help guide small firms toward savvier, more organized financial futures. Visit JHunter’s website to see some of the many services offered to small businesses, or give Jarad a call at (513) 460-7691.