The Bottom Line
Now is a Perfect Time to Get your Business Books in Order
2020 was the beginning of a new decade and many of us we were pumped up and ready to make this our best year ever...then COVID-19 hit ....and all of us have been thrown into a surreal work and life space and we are finding we are having to change what we do in order to survive.. For many business owners now is the perfect time to get your business books in order...
How does one do this?
If you do not already have a separate account and credit card for your business set this up and start using the business card for ALL business expenses and any income, deposit into your business account – do not co-mingle funds
Invest in Technology
For a small to medium small business, QuickBooks Online is the best value for money.
cloud based so everything is available where ever you are (so long as you have internet) and you can share it easily with your bookkeeper, accountant and other key people in your company
different subscriptions available and from as little as a dollar a day, you can have a very powerful information system (tip – purchasing your subscription through your bookkeeper or accountant is usually cheaper than purchasing directly from QuickBooks)
securely connects and downloads information from your bank and credit card accounts so entering data is quicker and there are less processing and duplication errors
invoice clients, send reminders and follow up on outstanding invoices
enter bills so you don’t forget to pay them on time
full-service payroll
Get Help from the right person
When looking for someone to help you set up your accounts or take over your books on a more permanent basis, I would look for someone who
will spend time to find out what information you are looking to obtain from your accounting system so they can set up your chart of accounts (categories) that will provide relevant data to help you make informed business decisions – even if you have you system set up, have it reviewed so you can fine tune it
will provide training and offer ongoing support if you are doing the books yourself.
you like –if you are afraid to contact your accountant/bookkeeper and dread talking to them as they are abrupt and almost rude, find someone else…
will update your books on a weekly basis– the more current your books are the easier it is to track how your business is performing and to make adjustments (reduce expenses, increase the price of your program or focus on more sales).
will keep you accountable – follow up with you, provide support on an ongoing basis, is responsible and available to answer questions
Should I do it myself or hire a bookkeeper
This is a complicated question and there are many factors but the most important question is:
“What is my time worth?” The time you take updating your books could be time spent making more calls to get more sales, working on a new program that will generate more income, marketing, spending time with family or getting outside to exercise. Most people think I cannot afford the extra cost at this time but in truth you are allowing more time in your week to focus on doing what you love best which will generate more sales
Commit to getting it done
In order for your books to remain up to date, provide relevant information and save time you need to commit to doing the work and make it a priority to get it done. Having am accountability partner will definitely help with the process.
