If you are serious about running a successful business, good accounting is essential. You need good numbers for three reasons.
1. Business Management Questions
First, you need to manage your business well. This requires accurate accounting information. In the course of operating your business lots of questions will likely arise. Here's a few.
Good, hard numbers provided by accurate accounting help with answering these questions. Without the numbers, you are shooting in the dark.
2. Financing
Second, you may need financing. Often, to take a business to the next level you need outside money. Whether you want it from a lender or an investor, you will have to prove you're a good risk.
Is your business growing and getting stronger? That's what potential lenders or investors will want to know.
They will look for the answer in financial statements, usually for several years, which you will have to provide. You need accurate, consistent accounting to produce those statements.
3. Tax Law Compliance
Lastly, you have to comply with tax laws. Income tax, sales tax, payroll taxes, business property tax. The amount of tax is based on the numbers in your books.