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Bookkeeping Frequency: Setting Your Small Business Up for Success

July 5, 2023 | Carl Corneliuson
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    The importance of good and accurate bookkeeping cannot be overstated when it comes to successfully running a small business. The process of recording and organizing all financial transactions for your business, bookkeeping impacts tax preparation, financial management, legal compliance, and can even help resolve audits and legal disputes.

    The frequency of bookkeeping should be determined by the size of your company, the number of transactions you handle and your specific financial management needs.

    Continue reading to learn bookkeeping tips that will help your Minnesota-based business with taxes and accounting best practices.

    Accounting and Bookkeeping Assistance for Your Minnesota-Based Business

    Bookkeeping does much more than help businesses track income and expenses, it provides a snapshot of the company’s financial health. From how to budget to identifying areas of growth and cost-cutting, accurate and timely financials are critical.

    Here are some key points for determining your bookkeeping frequency:

    • Daily Bookkeeping: For businesses with a high volume of daily transactions, such as retail stores and restaurants, daily bookkeeping helps ensure that records are accurate and up to date. This practice allows you to monitor cash flow closely and identify any discrepancies or issues quickly.
    • Weekly or Bi-Weekly Bookkeeping: Small businesses with moderate transaction volumes might find weekly or bi-weekly bookkeeping more suitable. This frequency allows you to keep a close eye on your financials while not becoming overwhelmed by daily record-keeping tasks.
    • Monthly Bookkeeping: For businesses with lower transaction volumes, monthly bookkeeping is a practical option. This approach allows you to review financial statements, track expenses, and ensure that all transactions are accounted for on a regular basis.

    Regardless of which frequency you follow for bookkeeping, having accurate books will help you with your taxes. Since you will need to report your income, expenses, and other financial information correctly with the state and IRS, ensuring your relevant data is organized and easy to access will help simplify your tax preparation, allowing you to put more time into your business with less risk of errors or being audited.

    In addition to tax preparation, bookkeeping provides valuable data you can use to grow your business. Accurate books enable well-prepared business owners the ability to fine-tune their business plans, increasing the likelihood of success. Data from your books can be used for forecasting future growth and challenges, enabling you to prepare ahead.

    Increase Efficiency and Long-Term Profitability

    Whether you choose to handle your bookkeeping internally or you want expert outsourced accounting assistance for your Minnesota-based company, you want to have accurate, easy-to-access books so you can review your financial, income and cash flow statements, along with other key financials. This access allows you to make informed decisions, increasing efficiency and long-term profitability.

    With Corneliuson & Associates, you get unlimited access to your data, and we’ll provide your outsourced bookkeeping needs for one fixed cost. Contact us to get a free consultation with one of our accounting experts. Well manage your financials, help grow your business and ensure tax compliance.