Why Good Accounting Records Allow You to Do So Much More

14 May 2019
 Categories: Finance & Money, Blog

Bad accounting leads to overdraft fees and bounced check fees. Yet, good accounting leads to much more than just making sure your bills are paid and paid on time. When you are not spending hundreds of dollars on bank fees, overdraft fees, bounced check fees, etc., you have more money for other things. Here is why good accounting records allow to you do so much more. 

You Can Afford More Small Rewards

Look at how much you are losing every month in bank fees. If it is more than fifty dollars, that is equal to a fancy sit-down dinner, a business deal and meal, one or two new pieces of clothing for work or for relaxing, or cab fares or ride shares for a couple of days. That is a lot of money! If you hire tax and accounting services to balance and manage your business and/or personal finances, you will likely find that you have a lot more money every month than you did before. Then you can buy something you really want, or entertain a potential business partner that could result in more profits in your future. 

You Can Reinvest the Extra Money into Your Business

Here is another example. Say that you are paying out close to seven hundred dollars in bank fees every month because your accounting and books are way off. That means that you are spending thousands each year trying to cover these fees and catch up on your business's bills to even things out. The trouble is, this pattern will continue until you can get things under control, and that means finding a way to stop the fees from rolling over you. To stop the fees, you have to keep better records of your accounts payable and accounts receivable so that everything coming in and going out does with minimal overlap. Once that happens, you will have all of this extra money to put back into your business and help it grow. 

You Can Take the Extra Money and Purchase Health Insurance

If you are a sole proprietor, you are responsible for your own health insurance, which is not cheap. If you have fifty or more employees, you are required by law to offer health insurance to your employees. If you are battling bad bookkeeping, you cannot pay for that health insurance, and then you really start having legal problems. Getting your books in order and keeping them in order means that you will then have the funds every month to buy yourself health insurance, or help your employees purchase health insurance.