As a new business becomes successful, the entrepreneur begins to focus on the main factors that keeps the business cycle flowing. It may be keeping the inventory supplied to keep up with demand, increase the service options to meet the client’s needs, or just depositing the money in the bank account. These are all fun and just some of the main reasons the new business owner created the company. But as the new business owner’s time becomes more consumed with these events, they tend to put off the tasks they dislike most such as the bookkeeping.
This is a trap that entangles many new entrepreneurs. In fact, in conversations with new entrepreneurs, this is one of the main problems many have in common. And because most new entrepreneurs have small businesses, the bookkeeping responsibility falls on their own shoulders. The new business owners take on this responsibility because of I.R.S. requirements, but soon discover they are overwhelmed with the task because they do not know the proper procedures or just don’t have the time. The bookkeeping quickly becomes unorganized or incomplete all together.
What many new business owners don’t realize is that this problem can be compounded as the new business grows and sales increase. Now they know they are successful so they must be running the business right, and begin to think the bookkeeping can be ignored even longer. The owners know the business is making a profit because of the amount of money in the bank. But they don’t know how much profit the business made over the past year, which month was the most profitable or the amount of increase in expenses as the sales have increased.
There are simple solutions to solving these issues. If the new business owner cannot hire someone to do the bookkeeping, then the first step to find the right accounting system that fits the business’ needs and provide the information the owner requires (hopefully this is done before the bookkeeping gets to this point), and to actually use the system. The system then needs to be setup so that it meets the needs of the business in the best possible way, such as creating invoices or tracking purchase orders. Finally, the new entrepreneur needs to take advantage of the features and short-cuts of the system most relevant to the business such as bank account feeds and memorized transactions. These features and short-cuts can save the owner precious amounts of time to address other issues of the business.
If you are looking for a someone knowledgeable to help your business with your books, accounting, or Quickbooks training, contact us for your no-obligation quote at (704) 560-9318.