Accurate accounting records for a small business are a must. Not just so your business can file income taxes either. Good records let you know at any time what your business cash flow and profit situation is. Accounting software for small businesses is an essential tool most small businesses must use to keep on top of the business.
Many small businesses like my friend’s service based Raleigh towing company originally grow from a tiny personal business that keeps informal personal records. It’s very possible for a small one person business to keep good records using just a paper system. But quickly a paper system does have it’s limits, especially when it comes to quickly putting reports together for making decisions.