Whether you are an individual living in Chicago or running a business, you have to keep track of all your financial statements. As you know, all citizens in the US are taxpayers. Paying taxes means accurate accounting to figure out what is the tax burden of an individual or organization.
While individuals can keep track of their financial statements on their own, it’s not the case with businesses. Whether you have a big or small business, you need accurate bookkeeping.
Accounting is rather helpful since a manager or business owner can make proper decisions when having analytical reports. It’s not an easy task though, and that’s why the job of an accountant is so valuable.
Study the article to learn more about accounting in Chicago and why it is so important, especially for small businesses. And if you are interested in getting professional accountant help, find out how Bookstime can help you.
Peculiarities of Accounting in Chicago
Business accounting according to US law is a measurement and communication procedure that accounts for various financial activities of a profit organization. There are also rules of accounting for individuals and even non-profit organizations since it plays an important role in taxing.
Accounting gives the important information that helps make decisions. For example, for business owners or managers of big corporations, the data gathered thanks to accounting helps in decision-making.
For banks, it has a different meaning. Based on data recorded by bookkeepers, banks can analyze whether the business can get the requested loan and then pay the bank back. Investors also use this data, but for comparison purposes when choosing which of several companies to invest in.
Naturally, there is a strict protocol that explains how to record all financial statements, generate reports, make forecasts, etc. Accounting requires knowledge and skills since mistakes can lead to a business getting fined.
It’s important to note that in Chicago, and overall in the US, accounting and tax are two different interlinked principles. Without accounting, individuals, businesses, and other organizations wouldn’t be able to pay taxes properly. Accounting is extremely important when it comes to taxes since it requires calculating the tax burden of a certain entity.
Accounting in general means keeping track of absolutely every financial statement of a company. But tax accounting requires reporting gains and losses that affect the tax burden.
That’s the reason why so many businesses prefer to use the services of bookkeepers. Some small businesses prefer typing an “accounting services near me” request in Google to find the accountant. Others prefer choosing experienced accounting firms like Bookstime.
Why Is Accounting Important for Businesses?
As it was mentioned, accounting requires but is not limited to keeping track of all financial statements. To pay taxes, you need accounting to figure out what gains and losses affect your tax burden. But that’s not the only reason why bookkeeping is so important.
Accounting answers the following questions:
- How much does a business need to pay for bills and its employees?
- How much does a business owe to suppliers, banks, investors?
- Do clients pay for services on time? If not, how much money do they owe?
- What are the expenses of the company?
- Is the business profitable? How much does it earn regarding to paying for expenses?
- How much of a particular product or service a business should sell? Is it profitable?
Bookkeepers that are responsible for accounting are capable of answering these questions. That’s why accounting is so important, especially for small businesses. If you have a business in Chicago, you should keep track of your financial statements to pay taxes according to the law. But in general, accounting gives you a better understanding of the overall situation of your small company.
Without keeping track of expenses and gains, you wouldn’t be able to tell whether you gain more than spend. Accounting also helps with getting new investors and loans from banks in case you want to expand the business. It is required for audit since both banks and investors will want to have a clear understanding of the performance of your business.
Bookkeeping seems like a very important task, and it is. But it also sounds like a job that should be done by a professional. Check what help you can get when using the services of Bookstime.
Bookstime: Professional Help with Bookkeeping in Chicago
Bookstime is an accounting firm, official partner of QuickBooks expert. We acknowledge your need to focus on growing your business, so we offer our professional help with accounting. Here is what we offer:
- A personal accountant for your business.
- Regular meetings and business counseling.
- Generating easy-to-understand financial reports with forecasts and explanations of how the business is performing.
- Mistakes free accounting according to US law.
- A reasonable cost of bookkeeper services.
With Bookstime, you can focus on developing different business directions, finding investors, getting loans, etc. While we will help you in achieving your goals by taking care of bookkeeping.
Author: Charles Lutwidge