An accountant with nearly 20 years of experience explains how bad bookkeeping leads to wrong financial statements, which means you overpay taxes. Accurate books let you keep more of your money.
Why is bookkeeping so important for taxes? Well, as the accountant, when I am preparing a tax return, I use the numbers directly from the profit and loss statement and balance sheet. And your profit and loss statement and balance sheet are reports directly pulled from your books. The financial statements are just the natural consequence of that entry. So if your bookkeeping is inaccurate, the numbers on your financial statements are going to be inaccurate. I would say in my experience for almost 2 decades at this point, if financial statements are inaccurate, if your bookkeeping is inaccurate, you end up overpaying in taxes, which is really bad. We want you to keep the money. The government has not proven to be very good at spending your money. We think the world's a better place if you keep it and you decide how it should be spent.
