Good financial statements do more than prevent panic attacks
If the IRS notified you of an audit, would you be in danger of having a panic attack because your financial records are not in order? Keeping accurate and thorough balance sheets, income and cash flow statements will not only prevent panic attacks, it will help you run your business better.
“If you are audited by the IRS, maintaining good recordkeeping can mean the difference between having the audit completed quickly, or suffering through a long, painful process,” said Keith Bookbinder, Managing Partner of LVBW. “However, the value of having good accounting records goes far beyond protecting you from audit troubles.”
“Having timely and accurate financial statements and working with people who can help you understand those statements, is critical in making strategic operating decisions regarding your business” said Bookbinder.
“Don’t think of your books as only a way of being in compliance with the law, think of them as your roadmap to the future,” he said.
Timely and accurate financial statements will help you:
- Anticipate cash and working capital needs
- Understand the interrelationships between business functions such as sales, production, warehousing and inventory control
- Identify areas for expansion or improvement
- Allow you to determine profitability by product, service or location
- Recognize how your business is performing by offering easy comparisons between one period and another
- Keeps businesses on track by comparing actual results to budget
- Make it possible to find important information and documents quickly
If the thought of balance sheets, profit and loss statements, cash flow statements, accounts payable, cost accounting and forecasting leaves your head spinning—or if your internal accounting group needs help, give us a call. The experienced team at LVBW will work with you to ensure that your financial statements are accurate and prepared on a timely basis.
For more information, go to www.lvbwcpa.com or call (716) 204-9000
