As a business owner, you may be wondering why you need to gather statements to do your bookkeeping. After all, can’t you just do it all in your head? We’re here to tell you that yes, gathering statements is an important part of bookkeeping—and we’ll tell you why.
1. To keep track of your spending.
Let’s face it, as a business owner, you have a lot of things to keep track of. From inventory to employee salaries, there’s a lot that goes into keeping your business up and running. That’s why it’s so important to keep track of your spending by gathering statements. By knowing where your money is going, you can make informed decisions about where to cut costs and where to invest more money.
2. To stay organized.
Organization is key in any business—and that includes financial organization. By gathering statements, you can keep track of all your financial information in one place. This way, when tax time comes around, you won’t be scrambling to find everything you need. Plus, if you ever need to reference a past purchase or payment, you’ll know exactly where to find it.
3. To catch errors.
Errors happen—it’s inevitable. But by gathering statements, you can catch errors before they become a big problem for your business. For example, let’s say you’re reviewing your bank statement and notice a discrepancy between what the statement says and what your records show. By catching the error early, you can avoid any major financial problems down the road.
As a business owner, it’s important to gather statements to do your bookkeeping for many reasons—including staying organized, keeping track of spending, and catching errors early on. So next time someone asks why you bother with gathering statements, be sure to give them this article! Thanks for reading!