Getting behind on paperwork for your small business happens seemingly overnight. After all, there’s so much to be sorted, calculated, filed, and examined that it can be difficult to stay on top of it all and run day-to-day operations. Unfortunately, bad bookkeeping can be devastating for small businesses if it’s not handled quickly.
For small businesses bookkeeping, Mesa business owners trust M&M Accounting to handle everything professionally and efficiently. Many businesses contact us after experiencing the effects of bad bookkeeping, such as being audited, incurring penalties and fees due to not filing their taxes, and losing money but not being able to find the source. Let’s look at the short- and long-term effects of bad bookkeeping.
Short Term Effects of Bad Bookkeeping
It doesn’t take long for poor bookkeeping habits to have a negative effect on your business. Short term effects of bad bookkeeping include not being able to make financial decisions, having to task unqualified staff with managing important financial records, and even spending money that you needed for overhead expenses and payroll.
Long Term Effects of Bad Bookkeeping
The longer your business has been behind on bookkeeping, the worse the effects will be on your company. From filing your taxes incorrectly or not at all, to transactions that are completely skipped over, your cash flow management and your bottom line will suffer. You may even make yourself vulnerable to getting audited, which could get very expensive as you try to find a professional to help you fix your bookkeeping at the last minute. Hiring a team of accountants to fix a major issue is much more costly than just hiring a bookkeeper to begin with, and you will incur the additional headache of trying to find and sort through all of your old paperwork.
Why Bad Bookkeeping Costs You Money
Bad bookkeeping has a domino effect, causing you to make poor financial decisions that you would know to avoid had you been on top of your financial records. You also won’t know how or when to take advantage of new tax laws, and you won’t be able to make the proper deductions come tax time.
Bad bookkeeping can even lead to missing huge opportunities, especially if they require some amount of financial risk. You won’t know if you can afford to hire employees, for instance, if you don’t know exactly how much you are making or spending.
Bookkeeping Services Mesa AZ
For small businesses bookkeeping Mesa trusts, contact M&M Accounting. Our business is built around providing the best customer services – we work closely with our clients to provide the advice, services and availability you need to know that you will never have to wait to have your questions answered.
At M&M Accounting, we handle everything from accounting to bookkeeping and tax filing, so you can focus on your business, instead of your paperwork. We even let you know if there are changes in tax law that could potentially affect your business, so you are able to take advantage of deductions that save you money.