Having a bookkeeping system in place for your business is the key to it’s success. A bookkeeping system provides a place for you to easily track your income, expenses, and other business transactions in an organized manner. It allows you to track your invoices and bills to assist you in improving your cash flow systems. You will also be able to run reports to be able to view how all those transactions have affected your business’s financials.
Without a bookkeeping system in place you most likely will feel like a chicken running around without it’s head. You won’t know which way is up or down, or rather how much you have available to spend, how much you have spent and on what, who owes you and how much, who you owe and how much, and if you are running at a profit or a loss.
Plus, what does tax season look like at the end of the year? Without a bookkeeping system you probably have a bag or box of receipts and you probably have lost some receipts too, which means you will be missing out on deductions and paying more in taxes. With a box of receipts you have no idea of how to plan for taxes and you will be paying more in professional fees than you would by just providing an annual report.
When you have a bookkeeping system it allows you to have all your business activities organized in one place. You will be able to analyze your financial reports and make smarter business decisions, know where you need to save money, how much you need to increase your price point by, how much you should be paying yourself, and how to plan for taxes.
A few different bookkeeping system solutions include QuickBooks Online, AccountingSuite, Wave Accounting, Xero, or Sage. My personal and professional recommendation is QuickBooks Online. I am a QBO Proadvisor, so I can offer some wholesale pricing discounts if you are interested in using QBO.
At a certain point in your business it is important to consider investing in an accounting professional to assist you in handling your bookkeeping and tax needs. An accounting professional is an expert in the processes of tracking business transactions, creating reports, analyzing financials, planning for taxes, preparing taxes, and helping business owners understand and use their financials smarter. It may take you 20 hours a month to do your bookkeeping tasks and still have no idea what the numbers all mean relating to your business, but it might take an accounting expert 2 hours a month to do those same processes with a clear understanding of what it all means and then break it down for you to understand along with providing you recommendations on how to move forward more efficiently.
The time that an accountant can save you is a huge benefit to business owners. Especially if they are feeling overwhelmed and like they don’t have enough time in their day. The amount of time an accountant can return to business owners will allow them to have more time to spend in their business and grow to have a greater return on investment than they would if they were spending their time doing their own bookkeeping tasks. Plus having a partnership with someone that you have open communication with and trust to give you expert advice throughout the month can be a life saver to help build your confidence in your decisions and in your business.
I personally work with service providing business owners who have been in business at least 3 years, have a profit and looking to continue to grow, are down to earth, genuine, and value receiving help where they need it. If this sounds like you and you are interested in chatting to see if we would be a good fit moving forward, I would love to chat to see if we vibe well together and how I can partner with you and your business. I love helping other business owners feel confident and regain their time by helping them understand their financials and do taxes smarter without all the overwhelming feelings.