In the fifth video of our series, Ty Meinhardt of the Easy Storage Solutions accounting team discusses the importance of accounting for your business.
What could go wrong?
Maintaining your books and financial statements could be compared to maintaining your car. If you don’t maintain the essentials on your vehicle then you will likely suffer significant loss in time and money to repair issues after the fact. The same could be said about your business accounting. If you don’t properly maintain your books, and financials you may have to pay a decent amount to have the problems fixed in the future.
What are the benefits?
Benefits of having updated financial statements include knowing where you and your business stand in terms of cash flow and profitability. In addition, being able to use your updated financial statements when making important decisions for your business. Furthermore, you can view your expenses compared to your gross profit, and then compare that to industry averages. This allows you to make informed decisions that will benefit your business in the future. Finally, if you are just getting started, consulting with an accountant can help you determine what entity type will be best for you and your company!