Updated: Oct 15, 2018
4th Quarter is here! There’s no hiding from it. As a small business owner or manager there are multiple tasks vying for your attention; so, it’s no surprise when bookkeeping & accounting gets put to the back burner.
Are you ready to
record all your business transactions in a systematized way that can help you know how your business is doing and prepare for taxes?
As a small business owner, keeping your books current will allow you to know your numbers and understand your cash flow activities. Avoiding your books until tax time prevents you from knowing if your numbers match your financial objective. The number 1 management habit of a small business owner should be to review their numbers. Reviewing your P&L, Balance Sheet and Statement of Cash Flow is key to knowing how your business is performing.
Consider the unknowns
of not keeping your books current:
How do you know if your business, jobs, or projects are making a profit or not
How do you know where your sales are coming from (which customer, product or service)
How do you know whether you’ve collected all money owed to your business
How do you know where your money is being spent or where you can cut-back
How do you know if a future investment is right for your business
How do you plan for future revenue
Knowing your numberswill enable you to make correct business decisions. For small business owners decisions like whether to hire, fire, expand, downsize or purchase equipment have little margin for error. Your numbers determine your ability to act; so, it’s a good practice not to avoid your books until tax time.
Yes, filing taxes is a task that most would happily avoid. But knowing where your business stands and having enough time to make corrections can take the pain out of filing. In fact, staying on top of your books can highlight the benefits of your returns and help you plan for potential tax saving.
Like they say, “running a business is all about the numbers”... All the more reason, to make knowing your numbers and what they convey about your business a priority.
If doing your own
bookkeeping and accounting make you uneasy? I'd be happy to help:
Record income and expenses
Review and reconcile accounts
Job costing and inventory management
Provide timely financial reports
Let's take care of your finances, so that your finances can take care of your business.