This is a great question that I’d like to address with you today.
Having a bookkeeper who knows the nuances of your business is critical. Knowing your industry will ensure the bookkeeper will know what reporting is necessary, how they can record transactions that show the true picture of the business. This enables the business owner to compare their position with their competition. Otherwise they would be comparing apples to oranges and they would not have a trip picture of whether they are successful or not.
For example, I work with franchise owners and it is helpful that I understand what the franchisor requires. There are many franchises that require monthly, quarterly and annual reports. Knowing that process keeps the franchisee compliant with the franchisor.
I have extensive experience in many industries and know the language used on the financials, what business owners in the particular industries like to see and so I can provide analysis to them which helps them understand how the business is doing.
It’s helpful if you have a bookkeeper that knows and understands that. They can provide you with statements that are clear to you and anyone in your industry.
If you have more questions, I suggest consulting with an experienced bookkeeper.
