One of the major benefits of bookkeeping is understanding how your business is doing financially. Your money can easily get away from you if you do not understand where it is going every month. 

Some of the things you have to think about are - Is  your money being managed correctly? Are your expenses exceeding your income. Are you buying too much inventory? Are your customers paying you on time? Are you keeping track of your money going out as well as coming in? Are you, yourself  carelessly spending  on a daily basis. 

By keeping  daily, monthly and annual track of your business transactions, you will be able to make informed decisions about the next steps you need to take to escalate your  business's future.

Another benefit of bookkeeping is that you will be prepared to have your taxes filed at the end of the year. No more shoe-box receipts. No more scraping up receipts at the last minute, or digging through records looking for the income you made  and  the expenses you paid out.  You will show up with confidence knowing that you are prepared and ready!

BookKeeping is for you; the entrepreneur; the business man or woman; the professional. Whether you are a Sole Proprietor, or Corporation, keeping up on your business's transactions is the most important action you can take in making sure your business runs smoothly. 

BookKeeping is for the sole proprietor (without an EIN) that sells dinners, sells handmade dolls,  sells jewelry, or performs rideshare tasks such as Uber \ Lyft, or Home Health Aid Caregiver (all independent Contractors).

The benefit of being a sole proprietor is that you can be your own bookkeeper.  However; as your business grows, you may become overwhelmed with keeping up with incoming and outgoing transactions.  The plus side of being your own bookkeeper is that you will actually see and understand the income you bring in, your expenses, and your spending habits.

BookKeeping is for the small business sole proprietor (with an EIN) that has a restaurant, retail store, mechanic shop, tire shop, lawn care services,  etc. You may even have a daycare center,  school, or fitness center.  Other small business's that can be one-person owned (sole proprietor) or multi-person owned (partnership), are physician, dentists, hair salons and barbershops etc.

The point is, if you are in business, you need bookkeeping services. It is really not that much different from you keeping up on your own personal finances such as your income and bills. 

When you are organizing your personal finances, you calculate your income to make sure that your bills can be covered and you still have enough left over to live a little, right? With your personal finances, we call that budgeting. 

In business we call that bookkeeping, because there are many transactions that take place inside a business besides income and bills. There's inventory - the products you buy to sell. There's short-term equipment - items that keep your business running such as pens, paper, toilet paper, hand soap, gloves, masks, etc. And there's long -term equipment that keep your business running like: registers, printers, furniture,  etc. Imagine trying to keep up with all of those things in your head. Right, impossible! Those items need to be kept  in a sacred place where you can monitor the usage (for short-term equipment) and depreciate the long-term items.

Bookkeeping also monitors your cash flow. If your business deals with cash transactions that you take in, and you place it in a drawer (or your pocket) after every sale, how would you know how much you make on a daily basis? Because often, when money is on hand, it is being spent without even realizing it. And if it is being spent, you need to monitor the amount you made in sales and the amount you spent. Believe it or not, you can easily earn $300 per day on sales, but easily spend $80 daily, on miscellaneous items such a food, (breakfast, lunch and dinner) gas, some cute chair you seen for your kid (smile), adding up to a grand total of $2240 for the month, of lost funds. And that is something you do not want!