A Revenue Canada Audit!
One of the reasons that you should have an accurate and up-to-date record of your revenue and expenses is that you will never remember three years from now, who you dined with on February 10th or what you bought that day that you claimed an expense that is on that fading white cash register tape. Having your bookkeeping organized makes an audit much smoother.
Government filings can be kept current and deadlines met when the bookkeeping is current. FILING on time is the law. Understandably, at certain times of the year, some businesses struggle to pay their HST owing as the cash flow is low. There are penalties for late payment, but it is the filing ON TIME of the HST report that is the law.
For yourself, to see clearly where you are spending your money and what products or services are bringing money into the business, your income statement is a valuable tool for you to analyze your financial situation and make plans for business development moving forward.
Not knowing your financial situation is like running your business blindly. You may be surprised to see that your bread and butter is in the smaller activities and that you need to pay attention to keeping those thriving while you chase the big projects, or you may see that too many resources are dedicated to the smaller activities that are lost leaders for your company.
At Mind Your Own Business, we work with our clients and communicate regularly as we maintain their books and make sure the government filings are on time.