I have been working with many of my clients over the last couple of months in an effort to get them organized, to get their taxes done. Almost all of them have been the “do it yourself” business owner until just recently. As I look over their books I am realizing just how difficult it must be for them.
I am sure you have heard the old saying “if you think it is expensive to hire a professional, try hiring an amateur.” I know I have said it a few times. I don’t remember where it came from, but I am sure a quick internet search will find that information.
That old saying is true, it really is. Most business owners don’t know that much about their books. They can post a deposit into Quickbooks, or create an invoice, or write a check without much issue. Some of them might even go to the trusted Quickbooks advisor who sets everything up for them with no issue.
As a bookkeeper with a few years experience doing just that, I am reminded that I have questions on how to handle some situations. I usually turn to the business accountant. Where do you go if you don’t have a business accountant? Who can you rely on to ask questions? Well most business owners have no idea. They don’t know anyone they can ask for help when it comes to their books. Most of them when they come across a situation that is a little less than clear, they take a wild guess as to where it would be categorized.
They know how much money is in their bank account, but really have no clue when it comes to the financial health of their business. You can’t keep a business running effectively if you have no idea how financially healthy it is. This is a very important part of owning a business.
When I talk about financial health, I am not just referring to the bank statements of your business accounts. When we discuss financial health this is taking into consideration, all of the bank accounts, your Receivables, your Payables, your Assets, your Liabilities, and a few other factors. We look at the overall picture, the whole pie put together.
If you are unclear as to what the financial health of your business, it is time to call in the cavalry. Get in touch with your accountant, or a local bookkeeper. Have this person look at everything, and explain things you don’t understand. The more understanding you have of the financial health of your business, the less stressed you will feel. The more you can concentrate on your customers, your employees, and the other aspects of your business.
If you have questions, please send me an email to firstname.lastname@example.org with Business Financial Health as your subject line. Are you ready to see where your business really stands?