Bookkeeping Services for Small Businesses
Having messy books is not just a disorderly business practice, it’s against the law. All businesses in Jamaica are required by law to maintain proper records to substantiate their income and expenses. Records are to be maintained for a minimum of 6 years.
Practicing good bookkeeping is essential for the success and sustainability of all small businesses.
Do you need Bookkeeping Services for Your Business?
Better Business Record Keeping = Better Business Operations
Lacking an accurate understanding of your business’s current financial standing or no record or documentation to verify claims can lead to some significant consequences that can not only can get you into trouble with the authorities, but can damage the company’s reputation.
Having your company books in great order is your biggest weapon in the case of a business audit being issued against you.
Due to the Self-Assessment Tax System, taxpayers in Jamaica are required to calculate, file and pay their taxes at the specific times set by the Revenue Authorities. The information shared with the TAJ (Tax Association of Jamaica) can be queried at any time.
"You can be visited or audited by a tax auditor at any time once you file these tax returns. They can call at any time and request a record to back up your claim and if you are unable to substantiate your claim, then you are liable for a tax assessment, so we encourage you to keep proper records.”
The negative effects of Poor Bookkeeping
Poor bookkeeping can have even more negative consequences for a small business. Here's a comprehensive list:
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Tax Compliance Challenges
Incorrect or incomplete records can lead to difficulties in complying with tax regulations, potentially resulting in penalties and legal issues.
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Missed Deductions:
Inadequate bookkeeping may lead to missing out on eligible tax deductions, increasing the overall tax liability for the business.
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Inaccurate Financial Reporting
Financial statements based on unreliable bookkeeping may misrepresent the true financial health of a business.
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Auditing Risks
Increases the likelihood of errors, making the business more susceptible to audits and regulatory scrutiny.
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Increased Accounting Costs
Correcting errors and reconciling poorly maintained books can lead to higher accounting costs
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Loss of Investor Confidence
The probability of securing funding or partnerships will be reduced due to investors losing confidence in a business with poor bookkeeping practices.
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Difficulty in Selling the Business
A lack of accurate financial documentation can impede the process of selling the business, as potential buyers may be skeptical about its financial health.
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Reduced Valuation
Can lead to a reduced business valuation, impacting its attractiveness to potential investors or buyers.
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Budgeting Challenges
May cause struggles with budgeting, leading to overspending or inadequate resource allocation.
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Inefficient Decision-Making
May hinder effective decision-making due to the lack of accurate financial insights to guide strategic choices.
Bookkeeping Services offered
Our Bookkeeping Services for Small Businesses will streamline your record keeping ensuring the maintenance of organized, accurate and up-to-date financial records.
Our objective is to get your records in complete order, providing a clear picture of your business's financial health. This will help to ensure compliance with tax regulations, reducing the risk of penalties and legal issues related to taxation.
Below are the specific bookkeeping consulting services we provide:
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Accounting System Setup
We offer seamless integration of robust accounting systems, fostering accuracy and streamlined financial operations.
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Bank Reconciliations
We optimize the integrity of your financial records by providing a clear and transparent view of your financial standing.
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Accounting Entries
We meticulously craft and input precise accounting entries, which ensures compliance with industry standards.
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Audit Schedules Preparation
We meticulously craft comprehensive audit schedules that serve as a foundation for a thorough and precise financial audit.