Small business owners often tell me they wish their bookkeeping could be better. When you mention the word bookkeeping to a small business owner you quite often see a cringe of pain on their face. For one reason or another most people just flat out hate bookkeeping. Many business owners think their bookkeeping is a waste of time and money. Then there are those business owners that enjoy their bookkeeping. Not so much the act of bookkeeping but the end result it provides their business. If you wish your bookkeeping could be better here are a few common problems and what to do about them.
Bookkeeping is Boring
For most business owners and people in general bookkeeping is boring. The word bookkeeping causes most people to think debits and credits. Debits and credits then cause confusion and sleepiness for those people. Believe me we get it bookkeeping is not sexy. We don't particularly find the data entry portion of bookkeeping attractive, but we love the value that good bookkeeping can put out. Most people find bookkeeping boring because they don't see any value in it.
Solution to boring bookkeeping: Pretty simple, don't do it. Find a professional to help you accomplish your bookkeeping, but stay involved in the bookkeeping process. You don't have to do your bookkeeping but you do have to understand it. Find a way to get value out of your bookkeeping. We will talk about finding value in your bookkeeping later on.
Bookkeeping is Behind
Many small businesses find that their bookkeeping is always behind. For one reason or another bookkeeping always gets pushed to the back burner. Before you know it you are so far behind on your bookkeeping that you don't even know where to begin. When your bookkeeping is behind you are literally running your business blind. You have no idea where your business is at financially and worse you don't know where you are going. It is really hard to find value in something that is not updated.
Solution to bookkeeping being behind: Find a way to get your bookkeeping updated on a regular basis. If you have a bookkeeper or outsourced bookkeeping service hold them accountable to meeting your deadlines. Set clear guidelines and deadlines for each bookkeeping task. Make sure that you are not only receiving information on time, but that the information is accurate.
Bookkeeping Does Nothing to Help
If your bookkeeping system does nothing to help you with your business then it is really hard to see any value in keeping the books current. Your bookkeeping system needs to provide you with unique information that is useful to you in moving the business forward towards its goals. Your bookkeeping should be a tool that you can use to aid you in making key business decisions.
Solution to bookkeeping not helping your business: Turn your bookkeeping system into a valuable tool. First, clean up your bookkeeping system and bring it current. Next you need to figure out a way to find value in your business bookkeeping. Communicate with your bookkeeper to let them know what is important to you. Customize your bookkeeping system to satisfy those needs. Then hold your bookkeeper accountable to keeping your system current and use it to help you grow the business.
It isn't wrong of you to want a better bookkeeping system. In fact you should always be pushing your bookkeeping system to perform better than it currently does. Always ask your bookkeeper to raise the bar and build a better system.
What are you not getting from your current bookkeeping system that you wish you had?
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