If a business owner keeps poor accounting records, their tax accountant has no choice but to file taxes based on sloppy and inaccurate financial statements. In this situation, the tax accountant can’t minimize the client’s tax liability, because they are basing their work on inaccurate financial statements.
You can see now why I’m so happy to hear your commitment to doing better. Make it your project to get yourself organized this month, and your mission to keep up with good habits throughout the year and you’ll find that keeping your records updated and organized isn’t scary at all! Here are my suggestions: