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Why Should I Keep Financial Records?

Written By: MB Group

No matter your business or industry, it's imperative to keep solid financial records. This is the one area of business that every enterprise has in common. However, managing to keep records for financial reporting is often easier said than done. Fortunately, the experts at MB Group can and will help. 

We are a team of experienced CPAs and business consultants who can lift the burden of keeping records and financial reporting. This way, you can focus on growing your business with the business insights we provide. Continue reading to learn more about why you should keep financial records and how the experts at MB Group make it easy.

What Are Considered Financial Records?

Financial records can include any number of critical documents that may contain relevant information about your business. The list of financial records is seemingly endless, but some of the most common are:

keep records
  • Invoices
  • Payment receipts
  • Tax returns
  • Tax statements
  • Expenses
  • Bank statements
  • Credit card statements
  • Cash register tapes
  • Depreciation schedules
  • Credit card slips
  • Receipts
  • Bank deposit records
  • Copies of checks
  • And more

In addition, your financial records also encompass all of the business financial statements and reports generated, such as: 

  1. What Are the Benefits of Keeping Financial Records?Income Statement
  2. Balance Sheet
  3. Profit-Loss Statements
  4. Cash Flow Statements
  5. And more

Keeping your financial records organized and sorted ensures you'll be able to retrieve information when you need it the most. A few additional reasons you should keep records are listed below. 

Track Sources of Income

In business, you may receive income and assets from a range of sources. With proper record keeping, you can easily identify the source of your income, track trends, and even make projections. This is also critical for you to separate your personal income receipts from your business income as well as non-taxable vs taxable income.

Simplify the Preparation of Business Financial Statements

To prepare accurate business financial statements, you need solid records. Whether it's a balance sheet, income statement, or any other statement; your financial reporting will be only as good as your records.

Determine the Financial Wellness of Your Business

Good records can serve as a litmus test for the growth and progress of your business. Your business records can indicate which items are selling, inventory turnover, whether changes should be made, and if your business is improving. Simply put, sound financial records can improve your chances of success. 

Tax Return Preparation

Most business owners loathe tax season and tax preparation. However, when you have good financial records, you can rest a bit easier knowing everything is in order. Your business records are integral for tax planning to support expenses, income, and credits you report. 

Save Money with Organized Records

If you fail to keep organized records and receipts, you may miss out on key tax deductions and credits. These tax deductions can significantly lower your tax liability and result in real business savings. 

What's the Best Way to Keep Records?

As a business owner, your time is at a premium, and you have a lot on your plate. Because of this, many business owners choose to partner with the accountants at MB Group for assistance with financial records. At MB Group, we utilize state-of-the-art technology to simplify the process of keeping and managing your financial records. 

While we may suggest one financial record-keeping system over another, we can partner with you to provide guidance and assistance in the implementation of the system of your choosing. We can provide as much or as little assistance you need to implement and continue managing your electronic record-keeping solution. Through our patented and proven business record-keeping process, we offer a range of benefits: 

  1. Save time. We'll do the heavy lifting, so you can focus more on growing your business and less on tax laws, the latest legislation, and paper trails. 
  2. Avoid potential penalties. If you miss a tax payment, you could be penalized and face hefty fines. By partnering with MB Group, we'll reduce the likelihood of filing late tax returns and prevent expensive penalties. 
  3. Minimize tax liability. When we manage your financial records, we can ensure you maximize all deductions and tax credits, which means reduced tax liability. 
  4. Reduce your anxiety. Knowing you've outsourced one of the most time-consuming and cumbersome activities to experienced professionals will help you rest and grow easier. 
  5. Gain actionable business intelligence. We won't only manage your financial records, we'll create helpful reports, so you can gain actionable business intelligence. This can be key in determining whether a purchase makes sense and even the best way to procure equipment, such as a loan vs using cash.  
  6. Keep your business organized. Electronically-kept financial records are instinctively organized and allow you to quickly access detailed, on-demand reports.

Contact MB Group for Financial Records Assistance

You didn't start your business to spend all of your time pushing paper, filing returns, completing forms, paying bills, and billing clients. Instead, you started your business to focus on growth. If your overarching goal is still growth, you can save time and money by partnering with the CPAs at MB Group. 

Contact us today to learn how we can help streamline and simplify business growth. 

Tags: Businesses

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