One Big Reason to Ensure Your Financials are Up To Date

Many business owners have told me about their challenges with keeping up with their bookkeeping, about constantly being “behind”. No matter if you are a sole proprietor or own a corporation, if you don’t have financials, you have nothing to base your decisions on. Not only that, others can’t make decisions about you either.

A client came to me recently with a challenge. She needed to show proof of income for the last three years and couldn’t because she lacked up-to-date financials for her small business. She found herself in an unexpected, stressful situation, not realizing the impact it could have on her personal life.

As a business owner, unless you are taking a salary from your company (corporation), your only proof of income is your business financial statements or tax returns filed each year. Ensure you do file each year and hold onto those Assessment papers you get in the mail after filing. Store them in a safe place or, if you use online storage, scan and save them there. Don’t wait until trouble comes calling causing you to assemble proof of income in a panic.

This client had what was a simple need — to rent an apartment — but was unable to supply proper paperwork to satisfy the rental company. Yes, something as simple as this requires proof of income. Don’t get stuck in this kind of situation. If you cannot keep your bookkeeping up to date — no matter the reason — call us because we can help.