It wasn’t long ago when everything had to be processed with a pen and paper and your general ledger was completely written by hand, and having a P&L meant going through each item one by one to see where your profit margin was and if you actually made any money that month. With today’s best of breed technologies and outsourced services there is an easier way to accomplish record keeping without you have to do it all, life as a business owner has just gotten much easier if the tools available are implemented.
Advantages of Organization in Your Finances
Running a business is tough and any business owner knows that. No matter how much planning you do, you always end up having a fire to put out in one aspect or another to keep things running smoothly. Whether it comes to being short staffed, a natural disaster taking place, or your cashflow not being what you thought it was. Efficient record keeping helps you stay focused and always knowing where you stand month after month in the event of any of these unforeseen fires you deal with on a day-to-day basis.
Here are a few things you can do to help improve your overall business and life:
Having everything at your fingertips at a moment’s notice
Every business has several departments and when a business is first starting out the business owner must wear several hats. Whether you run a cafe, a spa, a medical practice, or a construction company, you have to know everything that is coming in and going out. Supplies, equipment. payroll and other financial items. And If your wasting valuable time looking for your exact numbers, that’s less time actively spent producing for your business. Having all your financials at your fingertips save valuble time and energy that can be spent elsewhere especially if you need it at a moments notice.
Keeping important documents stored
This is essential for any business. Not only is not knowing where your documents are but misplacing documents can be very frustrating, it can have a very negative effect on your business’ success as well as causing problems with your tax man at end of year. And if you have ever been through an audit you know exactly what is being said here? It’s serious, and having the ability to quickly locate the documentation you need can be vital to any organization.
Now most business owners no longer use a lot of paper but in the event you do or have a business that ends up with a lot of outside receipts and documents, then a document scanner with cloud based storage like dropbox or smartvault would be a very good solution and would make your CPA very happy when you supply him with a login at the end of the year verses a shoebox.
Keeping track of relevant data.
With the proper organization, you can capture relevant data over a period of time that will help you make better informed decisions. You can see trends in what customers are purchasing verses what your spending, if an item is no longer selling, if your profit margin is increasing or if you’re making a profit at all on any particular item or service. An unorganized approach doesn’t give you consistent data so you can never tell how your business is performing. You would be surprised at how many business owners go under year after year because what they thought they were making verses what their financial records truly stated were completely different, if organized properly they would still be in business today.
Improve your overall record keeping of your financial data
This is vital in any business because without proper record keeping you never really know where you stand. Unfortunately, we see it all too often an entrepreneur comes up with an amazing idea and begins to implement it with all the passion and love that first made them go into business, then before it even begins it has ended. So, before you become another statistic utilize the resources available to you without over extending yourself with all the overhead of more staff. Outsourcing your bookkeeping not only organizes all of your financial data it also takes the stress and pressure off of the business owner that can utilize that time in more positive happy ways. Your CPA will love you at tax time, your family will love you for not missing any of those important social events, and you can actually have a date night again with your significant other. For more information on how you can outsource your bookkeeping functions, contact us today!
Subscribe to our newsletter and always be the first to hear about what is happening.