Keep your financial records up to date, not monthly, but weekly, at least.
Why Is It Important to Keep Account Information Updated?
Information drives decision making. Your books provide valuable information and insight into your business. Having access to accurate and up-to-date financial data allows you to make decisions by following trends instead of trusting your gut. Your gut can be useful, but not when it comes to accounting and taxes.
What Information Helps Your Business Make Decisions about the Future?
It’s important to have the right benchmark information about your company in order to measure progress, forecast outcomes, and make decisions about savings, investments, and more. Some of the main questions to ask yourself are:
- Do you know what your monthly overhead expenses are?
- For every sale that you make, do you know how much it costs you to make that sale?
- How much can you afford to pay yourself, and how much should you save for taxes?
We help our clients answer all these crucial questions and achieve goal setting and monitoring, but not until the books are … up to date! And those books can’t be junk; they need to be accurate.
I totally understand. It’s annoying. It’s time-consuming….
But those numbers are so important. They tell a story about the company’s financial health and allow you to compare and contrast spending in various areas to determine what can stay and has shown benefit to the company, and what can go.
How Can I Get Started with Bookkeeping for My Small Business?
How do you keep accurate financial records that make sense to you, without spreadsheets and spending hours with a pen and paper? Once you get setup with the right tools, it’s easy to keep track of this information and update it regularly. Financial data can even be collected and used in real-time to monitor progress towards the targets and goals that you’ve set.
For our small business clients, we usually recommend that they start with QuickBooks Online. Check out how easy it can be.