Are you doing the bookkeeping for your business? If you are then you will need to read this…
It can feel like a chore to many business owners – and understandably so. You didn’t go into business to become a bookkeeper.
BUT, knowledge is power – so let me give you a bit of an understanding of why bookkeeping is so crucial for your business and how it can help you increase profits!
Bookkeeping tracks all the daily financial transactions of a business.
Accurate bookkeeping helps build the bigger picture of your company’s financial health.
Mess up the bookkeeping, and you’ll never have an accurate representation of how your business is performing, resulting in bad business decisions.
Bookkeeping is like a map that tracks and records the journey of a business.
When a business starts up, that map is just a blank piece of paper, but over time it starts to evolve, providing key patterns and insights, and enabling you to follow the road to success.
This map identifies where your business is and isn’t making money, where there are inefficiencies, and where time should be spent to grow your business.
The owner or CEO of the business, the steward or caretaker, uses this map to do more of what works.
And less of what’s not working, resulting with….?
You’ve guessed it – increased revenue and better cash flow (and less stress for you!)
How else can good bookkeeping help you?
- Ensure you continue to serve your customers and continue doing what you love by staying in business for the long term,
- Maintains good profit margins and positive cash flow reducing stress for business owners and staff,
- Ensure everyone gets paid the correct wage and feels valued for their hard work,
- Help you, the business owner, stay true to the values and culture of the business because you know your numbers.
The underlying process of bookkeeping is vital.
Without this information, there is NO way to determine if the business is profitable and on track to reach its goals.
Many business owners rely on the amount in their bank accounts to measure success.
Or that they’re enjoying the work they do and making a difference to the customers they serve.
These are all essential things, but they are not the vital metrics to be looking at for long-term business success.
They are the bonus metrics for running a profitable and financially sound business that doesn’t take up all of your time!
When people start in business, they only know what they know, right? And quite often, hope for the best,
With the right team helping you, the bookkeeping becomes a straightforward process providing clarity and much-needed stress relief to the business owner.
Think of the bookkeeper or CFO as responsible for drawing the map for the business owner. The business owner then is well equipped for the journey and can drive the business along the road to success!
I have a checklist for you that will help you ensure that you are on the right track.
You may also want to book in time to chat with me to go over the guide for your bookkeeping.