To be completely honest with you, I can’t stand doing my small business’ bookkeeping, but I understand it’s importance. It’s what keeps our businesses headed in the right direction and lets us know how far we have left to go, but it takes dedication and knowledge to do properly.
At Kahuna Accounting, one aspect of the value we provide to our clients and anyone interested in learning more about how to get a grasp on their business’ financials is education. Articles, webinars, video tutorials, case studies, podcasts and customer support are all ways we educate entrepreneurs and law firms, helping them learn how to grow their business with bookkeeping and accounting.
One of the most common responses we get to our content, and something I find myself thinking daily while working with Kahuna, goes something like this:
“You helped answer a question I didn’t even know I had.”
It’s a rewarding thing to hear, but as an entrepreneur, it’s also scary for me to hear, because there is a lot that I don’t know about accounting. Since I’m a big fan of reading content about areas I need to improve in, I compiled a list of the articles we’ve created for entrepreneurs and law firms about the importance of their bookkeeping and how to grow their business by putting a financial system in place. Enjoy!
When we mention that bookkeeping can help a business grow, we’re often looked at as though we have asparagus hanging out of our noses. But the truth is, getting the right system in place and critically analyzing your financials is one of the easiest ways to grow your business and the only real way to know how your business is doing.
Although the average soloprenuer can’t afford an in-house bookkeeper, there are ways to work with a virtual team to get competent and affordable help with your bookkeeping. Even in situations where there is the budget for a bookkeeper, it’s not always the best option if your business can’t properly train and manage the bookkeeper. This article will highlight what to consider when weighing whether you should hire a bookkeeper or work with a virtual accounting team.
Entrepreneur and lawyer Lee Rosen opened our eyes to the biggest problem when it comes to bookkeeping for a law firm, and it goes far beyond just taking up our time or being expensive to hire a bookkeeper. This article outlines a couple of the reasons bookkeeping is such a pain for small businesses, law firms, and attorneys.
Like not knowing what you don’t know about bookkeeping, many entrepreneurs don’t know the pitfalls to avoid when it comes to managing their own books. Here are the top 8 mistakes most entrepreneurs make when handling their own financials.
Tax time is far from the only time of year when bookkeeping has an impact on your business. Here are two of the benefits listed in the article:
1. Focus where you are strong
Although bookkeeping can be a powerful tool to use, it doesn’t mean you have to like doing it. Hiring a good bookkeeper (or outsourcing) can allow you to get the results we’re describing here without you having to dig deep in journal entries, chart of accounts and bank reconciliations.
Being able to focus on your business and thinking strategically can be a results-multiplier for you.
2. Confidence in knowing what’s going on
When your books are a mess there is always a lot of unknown. You may have cash coming in, but you don’t have a real understanding of what is happening with the business and what the future looks like.
A good bookkeeper provides an extra set of eyes on the finances so you have someone to talk to and also someone who can point out red flags or potential opportunities.
“If there is one thing I have learned about providing bookkeeping services, it’s that nobody wants to talk about bookkeeping. Profit and loss statements, bank reconciliations, receipts…it’s just a bunch of boring numbers and a necessary evil that a business owner has to take care of so they can pay taxes every year.
That’s the general mentality you get from a business owner, and I completely understand it. As a marketer, I’d also prefer to not be thinking about numbers and how to record transactions.”
Here are the three critically important pieces in your business that are impossible without good bookkeeping.