The necessity for good, well-organized financial records cannot be overemphasized. One of the greatest mistakes made by owners of small businesses is keeping poor financial records and making improper or poor business decisions based on inadequate information.

The business' accounting records and financial statements represent a score sheet that tells how the business is progressing, as well as an early warning system that lets you know when and why the business may be going amiss. Financial statements and the underlying records provide the basis for many decisions made by outsiders such as banks, landlords, potential investors, and trade creditors as well as taxation authorities and other governing bodies.

Startups need accurate and timely financial records in order to make key operational decisions. Bookkeeping software can streamline this process. Without proper bookkeeping, you risk costing products incorrectly or not having the inventory to fill a crucial order.