Why Is It Important To Complete Records Accurately,completely And In A Way That Can Be Understood By Those Who Need Them?


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Robert Schatten answered
Keeping accurate and complete records is important to any organisation whether it is a hospital or bank, and are particularly crucial for anyone running their own business or working self-employed.

When running your own business, it is necessary to keep accounting of expenditures and income in order to show exactly what you are doing. In addition, you can then give information about any profits or losses that you are making. Using this information, you will then be able to see if there is any need to adjust prices or cut down on costs. Not keeping records completely and accurately in a way that can be understood by others (particularly the IRS) has lead many to lose their businesses.

If you are running a business from home, it is vital to keep track of all your purchases and acquisitions. There are many that will often be missed and in turn can have an effect on your profits and losses. If you are not good at keeping your own records, then it is essential that you hire someone else to do it for you. This can be in the form of an accountant, or it is possible to pay for virtual assistants. Such online PAs will do bookkeeping for small businesses over the Internet. Individuals can send any receipts to their virtual assistant, who will then keep track of the expenses and income through a software program such as QuickBooks.

The failure to keep complete and accurate records of any expenses and income can cause great problems further down the line. If you keep track of this information as you go along it is a reasonable easy task to organise your finances once you reach the end of the tax year. If you have left it until the tax deadline to organise your records then it is a process that will take much longer and become far more complicated.

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