BETTER BUSINESS BEGINS WITH BETTER BOOKS
The hardest thing about what I do as a professional bookkeeper is educating clients on why bookkeeping is so important. One of the things I stress is improving cash flow. The flow of cash in and out of a business is critical to that business remaining IN BUSINESS or being in the black (profitable) and not bleeding out (being in the red or operating bankrupt). You can have a business; it can operate but without having an accurate recording of revenues and expenses and the lack of enforceable systems; the business can and will always be in danger of closing down! It is running a bankrupt business, a business where one mistake or mishap can end all you’ve worked to build.
Good books are essential to a good business. In my soon to be released, E-book, entitled, “Bookkeeping Basics”, you will hear the discussion concerning bookkeepers and CPA’s and gain prospective about how the two work together rather than as options. I mention that because often business owners will consult with a CPA and think that is all required to maintain his or her business. They either try to find a friend, relative or think that they can provide or conduct the bookkeeping services personally and that never works! Bookkeeping is intentional and not to be conducted on a casual basis! There has to be some time dedicated to maintaining the receipts of the company, a procedure set for disbursements, a system for billing clients and collecting of revenues. The reconciliation of all bank and credit card accounts is the system geared to catch, identify discrepancies in the company. Whether it’s misappropriation of funds or just inaccurate recording of a deposit, reconciliation ensures that the business is running as it should and identifies fraud in every form. All of these functions are bookkeeping functions!
Improve my cash flow? Yessssssssssssssssssss! I know you aren’t trying to run a business in your head, are you?! I’m super positive that you aren’t trying to remember who owes you for what and when without a system?! Cash flow can be interpreted through your revenue and expense reports monthly through………………..BOOKKEEPING! How much money came in and when the funds came make all the difference in a company being able to seize and opportunity! Slow paying clients become non-paying clients easily! Large contracts that generate lots of business but are slow to pay can leave the business, cash poor. Working cash poor is the same as not having the contract because it means late payments to vendors and/or employees and that’s never good. Without bookkeeping, it’s hard to pinpoint these areas and then have strategic ideas about how to work around these hurdles and continue in the business successfully.
So bookkeeping isn’t optional! It’s a necessary service for a growing business and for improving your cash flow! YOUR BUSINESS CAN’T GROW IF IT’S NOT IN THE KNOW!
