There are few things in business that can do as much damage as poor bookkeeping. In fact, it is most likely the number one reason a business fails. Business owners waste hundreds of billions of dollars each year on extra fees, penalties, employee theft, missed invoice issuance, and more.
Keeping business books up to date is vital to optimizing profits.
Good Records is Key to Better Planning
Keeping Business Books current is one of the most important areas of business management. This is important for knowing company trends, reviewing financial ratios, business financing, and saving money on unnecessary penalties from the Internal Revenue Service.
Just a few fact from the IRS collection division:
- In Fiscal Year (FY) 2022, the IRS collected more than $98.4 billion in unpaid assessments on returns filed with additional tax due, netting about $58.8 billion after credit transfers.
- The IRS assessed nearly $23.8 billion in additional taxes for returns not filed timely and collected almost $2.3 billion with delinquent returns.
- In FY 2022, taxpayers proposed 36,022 offers in compromise to settle existing tax liabilities for less than the full amount owed. IRS accepted 13,165 offers, amounting to more than $234.3 million, during the year.
Why keep paying extra money out by filing late and or not paying taxes on time? Keeping business books current can save you time, money and headaches.
We teach small business owners how to build business credit. This includes what the benefits of excellent business credit are, and how to use business scores to enhance business financing.
BB Bookwork’s Inc has assisted many clients with federal and state tax issues. This includes helping resolve tax liens, reducing penalties, and securing reasonable payment plans.
Business plans, budgets, and coaching are core services that most small business owners need. Having the right advice and resources to solve specific problems is incredibly valuable to a business owner. Schedule a free no obligation consultation with us.
Keeping Business Books for Financing
According to the Federal Reserve “Banks’ Small Business Credit Survey”, 59% of small businesses reported being in fair or poor financial condition. The problem is made much worse when business owners fail to file taxes on time.
According to the most recent Federal Reserve report, the average small business loan amount is approximately $663,000. Could your business qualify for a loan of this size? What are some of the hurdles that you face when pursuing business financing.
The statistics on loan approvals have shown a sharp decline in approvals. This is why it is even more important to keep business books current and in order. Prior to applying for business financing, you should have bank statements available, business tac returns (and or an approved IRS filing extension, and other documents.