Can your business produce financial statements?

If you are in business and you cannot produce at least a monthly financial statement for your business you are not managing your business properly. Now I know we all do the best we can do. I know some of us can only afford keeping track of your expenses and income via an excel sheet. This is OK when starting out or if you cannot afford on going bookkeeping payments.

However,

as your business grows,

as you start to spend money on assets,

as you collect money from silent investors,

as you get lines of credits,

as you pay interest on borrowed money.

You are going to want a better, more reliable way to keep your books. Bookkeeping is double entry accounting. That means for every transaction ( ie. expense or purchase , income or sales, ) there are two accounts that are affected. For example when you spend money, an expense account and your cash account will be affected. If you do not understand double entry accounting, consider purchasing my book Financial Finesse. It will help you understand the who, the why, the what about bookkeeping and accounting. So none the less, double entry accounting cannot be effectively done in an excel spreadsheet. However can be effectively done in a bookkeeping software. A bookkeeper is trained and skilled at running bookkeeping software so that financial statements can be produce for your business at anytime, by day, week, month, quarter or by year.

So I implore you to start your new year off right with a bookkeeper. Do not wait until the end of the year to bring someone on board to catch you up for the year. We can better manage your finances if we are apart of the process as you grow. If you want to know more about bookkeeping for your business schedule a time for us to speak and lets talk soon.