An accurate, well-kept set of books is a good place to start when it comes to running a profitable business. Below are the reasons why –
You can ensure that you are earning more money than you are spending.
You will have accurate financial data for planning and budgeting purposes.
You can predict and avoid a cash crisis by keeping track of when you need to pay suppliers and when you might expect payment from consumers.
You are more likely to discover improper payments (or even fraud) that might cost you money.
You are capable of completing accurate tax returns.
Having your financial information organized makes it easy to collaborate with others, such as lenders, investors, and accountants.