Posts tagged accounting
BOOKS IN A MESS OR NOT UP TO DATE? FEEL LIKE YOUR DROWNING?

There is a lifeline out there, you just need to be ready to accept it.

If you have read the book “the Compound Effect” by Darren Hardy, the main theme is that you only have to make small changes consistently to lead to big changes over time. Being overwhelmed because you feel your books are a mess or not up to date is not where any of us want to be but we somehow ended up here. Many small business owners usually find come January/February we are scrambling to get our financials to our tax preparer and many of us swear that this year will be different but 12 months pass and we are back in the same boat.

There are four things you can do now and one you may have already done so there is less to do.

  1. Separate your business accounts from your personal accounts

  2. Set up 3 business accounts - 3 bank accounts (“Operating”, “Tax Savings”, and “Profit”) and 1 business credit card

  3. Invest in a cloud based accounting system and learning how to use it

  4. Commit to work on your accounts 1 hour a week or hire a bookkeeper if the amount of time spent (charged at your hourly rate) is greater than the cost of a bookkeeper.


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