(Shared by Ryan Mapes, Program Leader, Business Development Network, OSU South Centers)
By Bob Mason, Tax Buzz
When you embark on a new business venture, your focus is likely on the service or product that you’re providing, and not on the record-keeping responsibilities that come with the territory. Still, as nice as it would be to set aside things like general ledgers and accounting, they are an essential element of making your business a success, so it is important that you have a good grasp of the bookkeeping that needs to be done.
What Bookkeeping Tasks Need to be Completed?
Keeping good records serves a number of purposes. It lets you keep track of the health of your business at a glance. It also provides you with the data that you need to submit to the federal and state government every year at tax time. The more accurate and complete your financial records are, the better the information that will be available for both purposes.
Comprehensive bookkeeping will contain information about your revenues, your profits, and how much money is flowing out of your business for expenses, wages and other transactions. Being able to easily extract this information will definitely prove to be a benefit – you just have to decide how to go about it. It is a responsibility that can be outsourced to a small business accountant, or you can take it on yourself. There are advantages to both strategies – it can take some time to learn the process, but keeping your own books will ensure that you are always aware of your business’ health. By the same token, letting a professional do the job will free you up to concentrate on what you do best and are most interested in.