Why Small Business Accounting is Critical
I have worked with hundreds, maybe thousands of businesses over the years, and there is always a common theme among all of them. The ones who take their small business accounting seriously are the ones that have a higher chance of success.
Now, I’m not saying that small business accounting is the sole key to making a business successful. There are numerous factors, including competition, marketing, products, etc. But one key factor I have seen over and over again is when small business owners ignore the fact that they need to keep track of their finances.
It seems obvious that you would need to do this, but oftentimes, the small business owner becomes so overwhelmed by everything else they have to do, that the bookkeeping gets put on the back burner. When this happens, you literally lose control of your business. For example, how do you know which customers are bringing the most sales and profit? Which products or services bring in the highest margin? Did you make any profit? Do you have too much debt? Which expenses are too high in relation to your revenue?
All of these questions can be answered by simply keeping good books.
The most obvious choice among small business owners for doing this is Quickbooks. This software offers a relatively pain free way of keeping your books, while at the same time not requiring you to be a CPA or accountant.
So, to make sure you get off on the right foot in your business, please don’t get behind on your bookkeeping and make sure you keep it up to date! You not only will no more of what is working and not working, but you may even have a better chance of success!