Savvy Keepers

Business Mistakes - Not looking at your financial statements on a regular basis. Having an understanding of your business’s finances, where your money is coming from, where it is going, what your expenses are each month, is VITAL to your business’s success. Things are great when your business is making money, but wouldn’t it be nice to know where the money is coming from, and have a plan in place in case business slows down?

Remember the acronym “GIGO”, or “Garbage in, garbage out”? The accuracy of your business financial statements depends on accurate recording, classifying and reconciling transactions. The business financial statements can be used if you ever need a business loan, or set up a business line of credit, allowing you to grow your business and live your dream.

Q: Do businesses really need a bookkeeper year-round?
A: Leaving the books until tax time causes stress. You’re a business owner – you have enough stress running your business. The more time between the expense – or income - the more difficult it is to catch and correct any errors. If the transactions are not recorded correctly, the financial statements will not be correct, either – which can affect your bottom line, as well as your tax burden. Understanding every aspect of the financial reports is key to knowing what is going on financially with your business. Review your financial reports monthly. Notice trends. Are you spending more on supplies than previously? Good bookkeepers will help you understand your balance sheet and statement of cash flows, will be able to spot oddities, and identify where improvements can be made. Understanding your cash flow and forecasting future revenue are VITAL to your business’s success.