You Started a Business…Now What?
I remember the feeling well. We had just launched our construction company, we had clients, and we hired our first employees. The money started coming in. But I couldn’t shake the feeling that we didn’t know where our money was going.
Even though we had thousands of dollars in our account, we still felt like it wasn’t enough to avoid a big tax bill or a client not paying us. So we were stressed- really stressed.
Sound familiar?
Not all business owners know how to manage money well. They may have thousands of dollars coming in every month, but until they know where that money is going, have a good idea of their monthly bills and have a good emergency fund built up in case of emergency, they won’t be able to spend or take money out of their business confidently.
This is why accurate bookkeeping is essential for small businesses.
It provides a clear picture of the company's financial health. Understanding revenue, expenses, and profit margins helps business owners make informed decisions to drive growth.
It reduces tax-time stress by greatly simplifying tax prep. Maintaining organized financial records ensures compliance with tax regulations. Businesses must track their income and expenses to file accurate tax returns and avoid potential penalties.
Having up to date books means being able to send accurate data with investors or lenders. Accurate financial statements demonstrate professionalism and reliability, which can help secure funding or attract new business partners.
It makes creating a business budget a breeze. If you don’t have a business budget, you’re missing out on peace-of-mind, future growth and profits, and awareness of where your money is going. But that’s a conversation for another day.
Makes it easier to strategize marketing/advertising and its cost.If you don’t know how much “extra” money you have, how will you know how much you can spend on marketing to grow your business?
It gives you leverage to focus on what you’re good at, not what you’re not. The most successful people know, you don’t have to be good at every aspect of business. Outsourcing what you are not-so-great at is the key to growing the aspects of your business that you do enjoy.
As you can see, bookkeeping is a non-negotiable when it comes to running your business. You will never regret the peace of mind that comes with having your numbers in order. It will simplify your life and give you back your peace, and help you make money.
