Every entrepreneur or business owner knows how tempting it is to put bookkeeping on the back burner. But bookkeeping should never be ignored or done halfway. Without a crystal clear picture of your business’ financial situation, it’s nearly impossible to stay on track. Here are a few examples of how bad bookkeeping could disrupt your business.
Staff turnover leaves you in the lurch.
This is one of the most common “bookkeeping fails” out there. When an internal accounting department has a lot of turnover, critical financial information can get lost in the shuffle. What’s more, the departure of a key employee often means less experienced staff members must step in to fill the gap. As a result, it could be difficult to get timely—and trustworthy—financial information.
Inconsistent entries cost you money at year-end.
If your entries are inconsistent, you could find yourself scrambling at year-end to make corrections. And the more inaccuracies your tax preparer has to remedy, the higher your accounting fees may be. This leads to a lot of wasted time and unplanned expenses, but it’s easy to avoid. Getting help with your books ahead of time can save you both time and money at the end of the year.
Inaccurate information causes you to miss opportunities.
If you’re not keeping up with your books, you’re likely missing out. Unreliable financial information could not only delay important business decisions but it could also keep you from taking advantage of tax deductions. It could lead to cash flow woes, too. (Your online bank account balance is not an accurate indicator of your available funds!) And if you aren’t sure how much cash you actually have in the bank, how can you confidently say “yes” to making a large purchase?
Working with a professional can keep you on track.
For most business owners, bookkeeping is “one more thing” at the end of a lengthy to-do list. But there are professionals who can help. Bringing in a bookkeeping consultant to take over your books can not only mitigate your headaches but also strengthen your business. With the ability to see into your business, a bookkeeping consultant can offer recommendations for taking advantage of tax deductions and planning opportunities, improving cash flow, and more. Plus, with outsourced bookkeeping, staff turnover is no longer an issue.
Getting your books in control can save you a great deal of time and money. And I’m willing to bet you’ll also sleep better at night. If you have questions about your books or how we could help, don’t hesitate to contact me.