I was watching CNBC's The Profit last night and Marcus Lemonis said something brilliant.
From a financial perspective, I would say that the number one issue for small businesses is having access to accurate financial information when they need it. Many new prospects tell us that they don't feel as though their financial reporting is accurate and they don't look at reports often enough. So how do you get accurate financial reports for your small business in a timely manner?
Moving your business where you want to go is a lot like driving a car; it can be easy at times and absolutely crazy in other situations. Growing up on the east coast, I'm naturally an excellent driver (at least in my own head). When navigating along the road in your car, you face similar situations as when you are moving your business in the direction you want to go. Getting where you want to go depends upon how you deal with the constantly changing environment and it requires making good decisions.
Many business owners struggle to find value in bookkeeping. Small business owners often look at their bookkeeping as a nuisance or a means to an end, i.e., for filing their taxes. Since they don't see value in their bookkeeping, they develop a negative attitude toward it. However, there is a lot of value in a good bookkeeping system and a financial forecast is your most valuable business tool.
It seems like a silly question: Can you afford to grow your small business? However, many business owners don’t take the time to ask themselves that question and it ends up costing them. Growing sales doesn’t necessarily mean your business is growing its profits. In fact, growing your sales oftentimes leads to decreased net income when you don’t take the time to plan your growth. So, the next time you decide to attempt to grow your business, ask yourself: Can I afford to grow my business?
It probably doesn't come as any surprise that I handle my own bookkeeping. After all, bookkeeping is my profession, so it makes sense that I handle it for our business. A marketing consultant probably doesn't outsource their own marketing. If accounting is not your strength, then I highly recommend that you use an outsourced bookkeeping solution. There are several important reasons why I handle my own bookkeeping.
There are some key business metrics in your bookkeeping system that you may or may not be aware of. Most business owners look at their bookkeeping one of two ways; a means to filing taxes or a tool that they can use to grow their business. Your bookkeeping system should be a machine that you use to make key business decisions. A bookkeeping system that feeds you information on your key business metrics will help you make smart business decisions and scale your business. Below are a few business metrics worth taking a look at in your bookkeeping.
Many business owners don’t see the value in their bookkeeping, so they tend to ignore it. However, once you have been shown the value of the financial aspects of a business, you will then quickly want to master your small business bookkeeping. The following three steps will turn your bookkeeping system from a hindrance into a valuable tool that you can use to grow your business.
At SLC Bookkeeping, we do so much more than just bookkeeping; we help small businesses grow. Some bookkeepers understand QuickBooks, some understand accounting, and some understand good core business principles. If you find a bookkeeper who understands all of those aspects, turn them into a trusted advisor for your business because they can help you grow. We pride ourselves in understanding QuickBooks and core accounting principles. We also have a good understanding of what the financial reports of your business actually mean. Lastly, we have great knowledge about what makes a small business successful. Through growing our own business and helping hundreds of clients grow theirs, we understand what it takes to make it as a small business. The three ways SLC Bookkeeping can help your small business grow is through outsourced QuickBooks bookkeeping services, financial reporting, and business mentoring/coaching.
If your small business bookkeeping is not providing you with valuable information, you are missing out on a key business tool. Bookkeeping should not be a drag or a chore; it should be a business tool that promotes growth. Here are 9 things you can do for your small business bookkeeping that promote growth.