Why are good books and records critical?

Many small business owners are overwhelmed by the prospect of keeping their books, and often let this important task fall by the wayside. However, it is critical to keep excellent books and records for several reasons. First, good books and records allow you to monitor the progress of your business and make sound business decisions. Secondly, accurate books allow you and your CPA to prepare an accurate tax return, which is critical to ensure you are calculating and paying the correct amount of income tax. Third, good books will help you save money by ensuring that you are paying bills on time and collecting payments that your customers owe you in a timely fashion.