Do You Know What Good Bookkeeping Looks Like?

Posted by | May 09, 2018 | Entrepreneurship, Small Business | No Comments

Unfortunately, bookkeeping and accounting is not the most interesting topic in the world.

It’s just not as interesting as marketing, branding, websites, traffic or actually doing what it is your business is meant to do.

Bookkeeping can seem like a necessary evil, but when it is done right, it becomes very powerful for your business.

It can even be a driver for your branding, websites, traffic and all the fun stuff.

So here are 5 cool things that happen when bookkeeping is done right.

1. You get financial reports delivered to you

Nothing says, “I’m the boss” like having your income statement and balance sheet delivered to you every month.

Good bookkeeping means you get this report without having to dig into the details of how to produce it, which allows you to play the role of CEO and see the big picture of your business.

2. You focus on what you do

With Xero, good bookkeeping allows you to integrate with almost any tool that you are using to run your business.

For example, Kahuna does a lot of work with law firms. If an attorney uses Clio or Freshbooks to do time-keeping and invoicing, that system ties right in and the attorney never has to get into the accounting.

They can use the tool they are comfortable with and focus on client interaction and growing the business.

Good bookkeeping means you don’t have to enter the data from one system to the other.

3. You get paid more often

Speaking of attorneys, we had a meeting recently with an attorney who was explaining his invoicing system. It involved a lot of papers and file folders.

After going through he stumbled into an unpaid invoice from nearly 6 months ago.

That’s bad bookkeeping and that’s money that could be used for many things to grow a business.

This happens all the time in small businesses, yet small business owners often lament and wish they had more money to invest in certain marketing activities.

Good bookkeeping tracks who owes you and follows up with them to make sure that money comes into your bank – like it should.

4. You have confidence

Even though the entrepreneur-myth paints a picture of a self-assured renegade who fears nothing, we know deep down inside, most of us just want to know we’re doing this right.

It is not necessary or healthy to be an expert in everything. Entrepreneurs should only be experts in what they do.

When entrepreneurs do bookkeeping themselves, they are inevitably worried about doing it wrong and in turn losing confidence in their financials.

Good bookkeeping means the entrepreneur can sleep at night knowing their financials are in order. there is one less thing to worry about!

5. You have collaboration

Finally, good bookkeeping is good communication. Your bookkeeper – whether in-house or outsourced – is part of your team.

You should be able to ask questions.

“Why does this report look like this?”

“Why did this number go way down this month?”

And you should get answers that provide key insight into your business that allows you to focus your energy where it is most valuable and will help you build the business.

You may not like thinking about bookkeeping, but that may be because you’ve never seen good bookkeeping.

When bookkeeping is done right it can be very powerful and even pretty cool!

Interested in learning more about how Kahuna can help your business get the bookkeeping it needs? Schedule a strategy call with Kahuna Accounting and we can discuss best practices for driving cash flow, profit, and growth!

Schedule Discovery Meeting

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