One of the key differences in the life of a business owner versus that of an employed person is that the business owner must keep financial records. Lots of financial records, all categorized, correct and up to date.
There are many important reasons for keeping these detailed records of your business’ financial transactions. For one thing, this data keeps you, as the owner, constantly on top of how your business is doing financially. You’ll be able to make business steering corrections in time to head off crashes.
Another important reason for keeping detailed financial records is that they are required as proof of what you claim on your tax returns! With good records, you can take tax deductions that will leave more money in your pocket. That reward makes recordkeeping well worth the effort.
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