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Updated by Emily Rickover on Jan 23, 2018
Headline for Why Should You Maintain Good Accounting Records?
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Why Should You Maintain Good Accounting Records?

There are several benefits of maintaining proper accounting records. A profitable business is one amongst them.

We all know that accounting is an important business function and the importance of maintaining proper records can‘t be overlooked. If you need some convincing reasons, here are some of them:

1

Better Managed Business

You know your business in the best possible way. But reliable information about the business can be extracted from the records that are maintained by you. Believe it or not, it is very difficult to make good decisions if you don’t keep your records in proper shape.

2

Helps In Better Business Dealings

You must be able to produce invoices, quotations, and estimates promptly as well. Wrong estimates may land you in trouble while dealing with customers. In the same way, you can’t rely on the statements from the suppliers. With proper accounting, you may well be in better position to know how much you owe to the customers.

3

Easy To Prepare Management Accounts

Have you properly analyzed the accounts? Ever tried to find out that whether you are making money or losing money? When you are organized, it becomes rather easier to find any information regarding the original order and the goods & the work supplied.

4

Finding Important Information & Documents Quickly

When you are better organized, you can quickly find the information. It is especially true in case of the disputes. It is also very helpful when there is a change in the regulations.

5

You Can Easily Get A Bank Loan Or Overdraft

Banks like it when you seek an overdraft for the right reason and at the right time. When you maintain proper records, it becomes easy to get one.

6

Helps You In Planning Of Taxes

When you maintain proper records, it helps in many ways. You may have to plan properly for the tax payments and other liabilities, and with good records, you are better prepared to meet any emergency situation.

7

You Are In Better Control

When you maintain proper records, you are in better control of the business. You can check the tax positions rather clearly and avoid any penalties in the form of delay.

8

Helps You Reduce Accountant’s Fee

Maintaining proper records also helps you in reducing the burden of the accountant fee. In a way, it lowers the cost of the business.

9

In The End

Proper accounting helps you make your business more profitable so better maintain proper accounts.