"Making good judgments when one has complete data, facts, and knowledge is not leadership - it's bookkeeping." - Dee Hock

Introduction:

Bookkeeping is an essential aspect of managing a business.  It is the foundation of accounting and is crucial to the success of any business.

Here are three reasons why bookkeeping is important:

1. Helps to make informed decisions

By tracking income and expenses, bookkeepers can help businesses to make informed decisions about where to allocate their resources. They can identify areas where costs are excessive and make recommendations for how to improve efficiency. Bookkeepers prepare financial statements that provide an overview of a business's financial health. These statements are essential for businesses to understand their financial position and make informed decisions about how to manage their finances and grow the business.

2. Compliance with laws and regulations

Bookkeeping is essential for compliance with laws and regulations. There are many state and federal laws requiring the filing of reports and payments, and you need to know how and when to file.  Maintaining accurate financial records is essential for businesses to avoid penalties and fines for non-compliance.

3. Identify trends and patterns

By analyzing financial data, bookkeepers can identify trends and patterns that can help businesses to make better decisions. For example, if a business is seeing a decline in profits, bookkeepers can help identify the cause and recommend solutions. This allows businesses to be proactive in addressing issues and improving their operations.

Conclusion

Bookkeeping is an essential aspect of managing a business. It provides accurate and up-to-date information on a business's financial position, helps businesses to make informed decisions, and enables compliance with laws and regulations.  ProfitWise Bookkeeping is focused on the e-commerce industry and understands your unique bookkeeping needs.  ProfitWise Bookkeeping can get your books in order with one-time or ongoing services, including getting you up and running with QuickBooks. Contact us today!