Do You Know What’s Going On?
Focusing solely on account balances and bill due dates isn’t going to cut it in the long run. To run an efficient business, you need to know all the little details such as the amount of one-time and recurring bills, which vendors/customers pay on time and which ones don’t, how much credit you have and how much you qualify for, how much inventory you currently have, and much, much more.
Ignoring or putting off bookkeeping tasks only results in more work down the road. This will eventually take away from your ability to attend to all the other details, issues, and problems that occur when running a business.
Get Rid of That Old Box
Like many small business owners, you may have a shoe box/hat box/Tupperware designated for receipts, invoices, and bills. Toss the box and invest in a computer program like QuickBooks Pro to make bookkeeping easy (and maybe even fun). If you don’t (or can’t) spend time to learn new software, consider hiring a bookkeeper to do the work for you. Not only do professional bookkeepers enjoy putting small business finances in order, bookkeepers also have vast experience in using this and other software and may be able to show you some quick tricks so you can use it yourself.
Develop a Routine
Designate a specific time or day to complete bookkeeping tasks. Routinely complete these tasks at the same time or day – this will save you time and grief later on, promise! Depending on the size of your business, you may only need to update the books once a week or monthly. Make maintaining financial records a priority to avoid headaches down the road. If you decide to hire a professional, ask lots of questions and learn as much as you can so you know exactly how your business runs. Bookkeepers and accountants remove some of the stress involved in maintaining accurate accounts, but it’s still up to you to stay on top of all aspects of your business.