I love shoe boxes. Yes, that’s right and I am not talking about shoes. I’m talking about the vessels some business owners use to keep their business receipts in. If that sounds familiar to you, you need to get someone on board to assist you with getting those documents in order.
Many business owners start out with a product or service and then figure out how they are going to track their income and expenses. They have a general understanding of tracking because of their personal expenses but they don’t know accounting.
They’re not sure what they’re supposed to do. So, they just throw her receipts in a shoe box. I don’t want anyone to fear the shoebox. In fact, as I just said, I love shoeboxes. A good bookkeeper can take that shoe box, organize the paperwork run reports and ultimately have financial statements ready for their CPA to review.
Not only will those statements help with taxes, but the information also provided will help you make sound business decisions. They will show you where you need to grow and know what areas of your business, you’re most profitable in.
With this information you can further develop those profitable areas of your business and develop a budget to ensure a positive bottom line.
Some businesses are successful in spite of themselves. They grow without knowing why, their bills get paid but they really don’t have a good handle on the financial workings of their business. They just kind of flounder through life. With good goal setting and budgeting, you have something to measure against so that you can grow the business and achieve whatever future dreams you have.
If you have more questions, I suggest consulting with an experienced bookkeeper.
Barbara Flynn, MS, SPHR, SHRM-SCP
