When most people build their own business they do it with the idea of freedom in mind. Being able to work on your own time and dictate your own terms is an enticing prospect. Unfortunately, many new business owners get stuck in a vicious circle of suddenly expanding and then rapidly working to meet the new demand without having the proper infrastructure or plans in place. Accounting can provide a way for businesses to build and grow more effectively because it helps business owners see the immediate impact of their financial actions and decisions.
Accounting also allows you to take ownership of your business by:
- Letting you put systems in place and choosing which areas to focus on
- Identifying weak points, thereby allowing you to play to your strengths
- Holding yourself to a standard and making sure you follow it
- Allowing you to take ownership by making more informed decisions
Your financials are the determining factor on whether or not your business will succeed. If you don’t know where your business stands financially, you’re not able to take ownership and therefore won’t be able to effectively grow your business.
Planning Ahead to Increase Your Revenue
When it comes to accounting there are two types of people: Person A and Person B.
Person A:
Doesn’t do a lot of booking, compiles all their receipts, information, and various spreadsheets at the last minute and sends them to their CPA in a hurry.
Person B:
Has monthly financial reports, can see the impact of their decisions, does their taxes early, and has time to get REAL advice from their CPA.
Most CPAs want to provide you with clear, meaningful advice. Unfortunately, many simply can’t because they’re too busy sorting through your various transactions throughout the year.
When you’re able to get things done on time, you’re able to get better advice from your CPA. You’re able to get a better picture of your finances and see where you can make improvements. It makes a huge difference when you’re able to make the transition from Person A to Person B.
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