Bacoconsultants
One of the key issues that are found in common for many companies is that they fail to maintain their initial books of accounts properly. One main reason is that local organizations tend to focus on their core business activities…
Such organizations tend to maintain a rough record of receipts and payments and consider it to be enough. In my experience, most entrepreneurs tend to keep track of business finances using non-standard notes or in some cases no written records at all. One of the other reasons for adopting this approach is that most businesses don’t want to incur the expense of buying subscriptions or licenses to expensive accounting solutions. As a result, many accounting records from older periods are not properly maintained, and hence they get lost.
However, when the business starts scaling up rapidly, restructuring, or in the event they are slapped with additional tax liability for having improper accounting records, they come to realize the importance of maintaining proper books.