Many business owners are continually running on all cylinders in their business and they don't understand what a good set of books could do for them. That’s why people need to have a clear vision of their business finances so they can reap the “play” benefits of owning a business.
Why You Should Care About Bookkeeping
Having the books right allows you to see the big picture and analyze the trends and track efficiencies. Once you have those books done and you make sure everything's accurate, you can then pull out and get to the fun stuff.
The tax position is a strong leader in why you should get your books straightened out. If you don't have your books straight until the end of the year, there's no way to know whether or not you're going to have to save to make a payment or make a payment now so that you don't have to make the payment later. Therefore, you need to be on top of them regularly.
However, tax compliance is only part of the process and it’s not the only reason you need to get your books straightened out.
The Rewards of Getting Your Books Done
By getting your books done, you’re able to do cash flow analysis/forecasting look at your operating expenses to see if you have the ability to, for instance, hire additional people. That way, you’re able to save yourself from the stress of operations and ultimately have more time for fun and family.
With your books straightened out, you’re able to allocate funds through Profit First and be able to go through and look at those numbers growing over time. That comes with some confidence knowing that your operating account isn’t suffering because you didn’t pull in the wrong amounts into the other categories.
Additionally, you get to see what products are profitable, what revenue streams are profitable, and when you need to buy your inventory.
If you want to learn more about how you can achieve the best work through getting the books done, check out 022: Your Best Work Happens When The Books Are Done
