Managing your own accounting incorrectly can hurt your business now and in the long-term. Bookkeeping is by far one of the most important aspects of starting and operating a successful company.
While it’s easy to get caught up in glamorous tasks like designing your website or choosing a logo, you will not survive without a solid understanding of the numbers. The streets of entrepreneurship are littered with former business owners who ignored the financials and discovered too late that they were operating at a loss, not a profit. Don’t just think about hiring a bookkeeper. Think about hiring a bookkeeper who will guide you so you can take your Profit First.
For those of you stuck just thinking about the hiring aspect, you may want to pay attention to what Eileen P. Gunn from Entrepreneur has to say.
“Entrepreneurs who hire accounting help usually discover they weren’t doing nearly as well on their own as they thought they were.”
Among other things, a great bookkeeper and Profit First Professional combo, will know when you should be setting money aside for the slow months. The subheading of Gunn’s article also hits the nail right on the head:
“When QuickBooks takes you only so far, it’s time to bring in a financial pro.”
That statement is one of many reasons why AccountSolve focuses primarily on the Profit First method. Reconciling accounts isn’t enough. We know that, for you, summertime is the time that things slow down. Take advantage of that pace. Reflect and plan for the future. Ask yourself these questions:
- Are things better this year over last year?
- Are you in the SAME position? Did you use the Spring cash infusion to pay down last year’s debt? -OR- Did you start out with no residual debt from last year and find yourself in a good cash position?
That was the reflection part, and if you find yourself feeling negatively about the answers… you definitely need a bookkeeping professional.
Now for the planning part – because there’s still time for you to get it together:
- Take a cold-hard-look at the money situation.
- Make changes to maximize this year’s cash position.
- Determine where you can cut expenses.
- Review customer payment terms, and tighten where necessary.
- Look at inefficiencies and decide where you can ‘get lean’.
If you really don’t know how, it’s time to work with a professional. If you’re asking yourself ‘what does any of that actually mean?’ …you’re in a severe way, and it can only be corrected by getting a knowledgeable professional at the table.
For those of you feeling pretty good up to this point, here’s a tech tip that may help you cut more of those expenses. The Clarity Money app! This app can help you cancel unwanted subscriptions, saving you money. It’s not a replacement for a talented bookkeeper and Profit First Professional, but we’re in favor of tools that help you increase your bottom line.
Need to draw the line to save your bottom line? We can help.
