Successful small business owners are great at what they do. The clients are happy, and work keeps pouring in. But often, on the financial side of the business, things aren’t so rosy.
That’s because lots of small business owners dread bookkeeping – and it’s holding their business back. To compound the problem, the consequences of bad bookkeeping are not immediately recognized.
Here are five tell-tale signs you may be suffering from bad bookkeeping, followed by what to do about it.
- Plenty of business, but no money in the bank.
Is it because customers aren’t paying on time? Or because your expenses are too high? Maybe you never sent the customer an invoice? Cashflow, or the lack thereof, is death to any business. It’s the reason why 4 out of 5 small businesses fail. Being able to manage cashflow so that your company stays afloat between customer payments is essential for growth.
- Receipts all over the place.
You may find them on your desk, in your car, in your wallet, or may not find your receipts at all. Without a systemized tracking method, you will not be able to properly forecast how much cash you will have in the future.
- Invoicing is not a priority.
Sure you trust your clients and they are trustworthy people. But without a routine for submitting invoices, you will struggle to remember who has and has not paid, ultimately short-changing your company.
- Failing to reconcile bank statements.
Being vigilant with bank account reconciliation is a prime responsibility of small business owners. It helps combat the risk of fraud and mistakes by your bank. But reviewing statements regularly will also help you gain a better understanding of where you’re spending money, when you’re earning it and how the business is performing overall.
- No time for bookkeeping.
The final sign you might be suffering from bad bookkeeping is that you tell yourself you don’t have time for it. Your business is too successful and you’re too busy. Besides, you didn’t go into business to become a bean-counter. There’s a lot of ways we can justify the tasks we don’t enjoy. But developing an understanding and a system that holds you accountable is just what you need to ensure the longevity of your business.
There’s a lot of truth to business owners feeling like they do not have time for bookkeeping. You have so many other responsibilities. But although bookkeeping might not be the reason you went into business, it will help you make a success of it. And being successful and being able to enjoy the fruits of your labor is why you went into business.
Launching in May is a 3 Step Accounting BootCamp that will help you resolve your bad bookkeeping and address your bookkeeping problems.
It’s like a boot camp you sign up for to get your body in shape. Now sign up for ACCOUNTING BootCamp to get your business financials in shape!
Completing all 3 Steps of Accounting BootCamp will yield improved, functional accounting performance, ultimately equipping you to make wise financial decisions.
Following is an over-view of the 3 Step Accounting BootCamp:
Step 1 – QuickBooks Assessment. In just 30 minutes, find out if there are any red flags in your current QuickBooks that may cause costly financial consequences. Once identified, then fix any problems that may arise with Accounting BootCamp Steps 2 and Step 3. The QuickBooks Assessment is one-on-one to alert you to future financial nightmares. Schedule Step 1, QuickBooks Assessment today and click here for More Info. If you know your QuickBooks are a mess, skip Step 1 and jump directly to Step 2 below. Step 2 – Accounting BootCamp Training. This intensive course of training is designed to help you whip your bookkeeping into shape! During the 2, 90-minute sessions per week, your drill sergeant, aka Saunders Tax & Accounting accountant, will provide core training on basic accounting principles every business owner needs to know. This will be followed by a time to implement that principle in your own books with coaching support available as needed. Step 2 of Accounting BootCamp begins soon, so click here for Details. Step 3 – Accounting BootCamp Co-Working. Get a total transformation in your bookkeeping by committing to 3 more weeks of training and accountability! Register for these 3, 1-hour co-working sessions by committing to a lifestyle of bookkeeping wellness with motivation from your peers and assistance from our professional accountant. It’s Step 3! Persistency has gotten you to this point. Consistency will help you keep it! Click for More Info.
You cannot know your business’s numbers, nor have a clear understanding of your business’s financial health, with bad bookkeeping. Resolve your bad bookkeeping before it’s too late!
Contact our office at 301-714-2071 or visit www.SaundersTax.com if you have additional questions or simply want to delegate your bookkeeping to the professionals. If you want to maintain complete control, then you are encouraged to sign up for Accounting BootCamp today! It’s another way we continue to help clients experience a Less Taxing Life and More Prosperous Solutions since 1984!