The Dangers of Delaying Accounting/Bookkeeping Write Up

In this regard,the timely preparation of accounts and bookkeeping write-up will aid the compliance with internal rules and regulation. Some business managers prefer to do the books themselves, but in many instances they don't have the time or expertise to do accounting and take care of operations. There are likely to be errors because business owners are usually not good at accounting and Bookkeeping, and errors in the reports can cause inappropriate actions to be taken that will have adverse effects on the operation. Proprietors will be penalized for late payment of taxes, for errors in tax computation, or the absence of payment. If the books are not up to date these tax computations will be difficult. Where there are partners, or more than one persons running and benefiting from the business, the lack of accounting information will make it impossible to determine each partner's share of profits or loss, leading to mistrust among partners. When there is a lack of accounting data, the presence of pilferage or fraud may not be detected before much is lost. The guilty employee might have departed before the discovery is made, so that any chance of recovery is lost. Often in a small business, there may only be the owner and a bookkeeping help. The bookkeeper, who may be having personal financial difficulties, takes a small amount of money intending to pay it back. No one notices, so more is taken. Over a period of time, it starts to mount up to a lot of money.