Let Me Tell You How:
- Adversely affect your business: You might be making many sales and undergoing various transactions a day in and day out. However, if you fail to make systematic records you willmiss the collection part. No invoice, no collection, no follow-up and no profit!Eventually, it will crush you down.
- Fulfill regulatory compliance: Certain regulatory bodies like Income tax, FEMA, FERA, SEBI etc. provides for compulsory systematic books of accounts for recording purpose. They even impose the heavy penalty for non-compliance with the same.
- Free from audit pain: Regulatory bodies have prescribed certain norms for statutory audit on a yearly basis. To save your time and money on internal and external audits, it is important that you maintain proper systematic records.
- Missing out the tax concessions: Unorganized bookkeeping may cause overlooking of any legitimate tax concessions or exemptions. Therefore, if during your tax assessment, if your IT returns are not supported with necessary ledger accounts or other records, IT department might disallow those tax deductions.
- Avoid the last minute rush: Often a business organization has to do a mad dash and struggle during the year-end for filing their IT return all so because of inadequate and unorganized book accounting system. You juggle with documents, records and financial data at the last minute to find out all the paperwork. You can be spared from this entire headache, just start recording your business financial transactions right now!
- Know where your business organization is taking you: Unless you maintain proper records and statements, how will you come to know whether your business is making you any money or not? If you monitor your income and expenditure statements, profit and loss account regularly; it will help you take better business decisions before it gets too late.