If you’ve been trying to make your small business a reality for any length of time, you’ve probably already realized what a minefield the finances can be. In order to properly keep records for legal purposes, make sure clients, contractors, and investors are all happy with what they see, pay all the overhead, keep employees compensated, invest back into the business, and pay yourself – you’ve got a lot to think about. Many small business owners think they can get by with any small business accounting software and a few hours of number crunching every week – but there are many pitfalls you can encounter along the way. Here’s how the Profit Path helps you avoid these financial “don’ts”.
Even the Best Small Business Accounting Software Doesn’t Do It All
One of the big things that small business owners assume about small business accounting is that it’s so simple because there aren’t that many numbers to juggle just yet. But the fact is that when used at its most basic level, any software you get is going to be nothing more than a record-keeping device – not an accounting device. There are actually many steps beyond keeping records that a business must do to meet all the legal requirements. One of the first things we do on the Profit Path is help you understand how to create a custom accounting system that includes the software, but also includes everything else.
Occasional Small Business Accounting Isn’t Enough
Another problem that many small business owners run into is that they don’t have enough time to devote to the many tasks that need to happen for proper accounting. This is why big companies have entire accounting departments – there’s a lot of work involved with keeping track of the finances. That doesn’t mean you can’t do it yourself – just that you need to understand how to balance these tasks with your other work, and you need a system that works for you. These are two of the biggest things we help you develop on the Profit Path. And during our meetings, we can also help you tweak your system if it’s no longer efficient for your life. With us, your accounting system grows with you, instead of anchoring you to a schedule.
The Best Small Business Accounting Software Should Be a Decision-Making Tool
Finally, it’s our firm belief that small business accounting is not just about keeping up with regulations – it’s about helping you make great decisions for the future of your company. That’s why we don’t just create an accounting system with the Profit Path, but an entire map to success. We’ll help you understand how to analyze your financial data to decide your next steps. To learn more about the Profit Path, visit us online.