All of the different accounts of your business are colloquially referred to as “the books.” They comprise the different types of accounts of your business. For example, there are accounts payable, which is money that you owe to your suppliers. Also, there are accounts receivable, which is money owed to you by clients who have bought from you on credit. There is also payroll, sales tax, bank reconciliation, and much more. All of that can be very confusing. Fortunately, you don’t have to handle it yourself. If you want, you can hire a bookkeeping company to handle all of that for you.
Accounts Payable and Receivable
The accounts payable and accounts receivable figures are sometimes the most difficult for a business to navigate. The payable accounts are those that consist of money you owe to someone else. You need to make sure those are up to date and accurate. You’ll need to have good accurate accounts so that you will know when you need to pay someone and fees don’t sneak up on you. Also, you’ll need accurate accounts in case someone says that you owe them money; you need to be able to dispute that with facts.
The receivable accounts consist of money you are owed by anyone who did not pay at the point of sale. You’ll need to make sure that you have those up to date so that people are not taking your services without paying. A good bookkeeping company can keep those current. That will also help you pay your taxes.
Paying Taxes
A bookkeeping company makes it much easier to pay your taxes. You’re typically taxed based on your income and your assets. That could mean your net or your gross. Either way, you need to have both of them accurate so that you’re not overpaying or underpaying your taxes.
