Can I start by saying this?: You’re fabulous for giving your accounting workflow some much-deserved attention.
In my 25+ years of working in finance and accounting, I’ve seen so many business owners – especially creative entrepreneurs – ignore, forget about, or don’t ever give any love to finance, which is the backbone of their businesses. No cash flow, no business. It’s as simple as that.
Yes, I may be biased. I’m an #AccountingNerd and I adore a good workflow and efficient ways to get things done in my business. So I guess I’m lucky that I can take on the job of in-house accountant in my accounting business. (If I couldn’t, I’d be in trouble, right?)
Back to you and your business, though: You can’t escape your business’ need for up-to-date and accurate financials. I suppose you could leave it for a while. I mean heck, I’ve worked with clients who are behind on their books and tax returns by two years or more. No judgment, by the way. I love helping my clients get caught up.
I promise you, though, that letting your finances get behind is going to cost you BIG TIME. Here’s why:
• From a practical perspective, hiring someone to do your “clean up” or catch up bookkeeping and accounting costs a lot of money, and you’ll have to pay that out in one big, painful payment. If that’s what it’s come down to, well, there’s nothing we can do to change it. But if you can catch that now and get caught up OR set your new business up properly, right from the start, wouldn’t that rock?
• Also from a “you have better things to do” perspective, getting years’ worth of paperwork together (digital and hard copy) for your accountant or bookkeeper is a pain in the patootie. Getting a record-keeping system up and running is pretty easy and painless when you’re passing those records off to an accountant.
And yes, the paperwork matters. Guessing doesn’t lead to honest books and tax returns, plus the numbers can be wrong, which makes for crappy year-over-year comparisons. (Don’t know what that means? No problem. It’s important, but first, let’s get your books sorted out, K?)
• Taxes: Ugh, right? Simply put: If you don’t get your books done you can’t file your taxes and you’ll have to pay penalties and interest + miss out on any government programs and benefits that might be available to you. At the time of writing, I know of a number of business owners who aren’t eligible for COVID relief simply because they haven’t filed their taxes yet. Or worse, they paid people under the table or didn’t claim cash jobs. But that’s a whole other topic we can chat about later.
• Cash flow: Oh my gosh, the lifeblood of your business AND your personal finances, right? You might think you know all the ins and outs of your cash in your business, but when things really get rolling, those mental budgets and cash flow projections are going to mess. You. Up. Seeing the numbers on paper in the form of just one or two key reports that a good accountant can help you understand? Priceless.
How do I know? Well, running my own businesses and doing the financials for countless other businesses and organizations has shown me how helpful a good financial report can be.
Let’s see: You’ll save money and time, you’ll avoid calls from the “tax people,” and you’ll be a financially savvy business owner. These all sound like reasons to get your business’ financial house in order.
So what’s stopping you?
Oh, you’re not sure HOW to do this?
And here’s what else I got: A handy-dandy checklist to help you get started.
It’s simple. It’s realistic. It’s fab.
Click right HERE to get your PDF Accounting Checklist.
You could use this if you’re catching up on a few months – or years – of accounting in your business.
And you can keep using it month after month to keep up with the money matters in your business.
Also, if you’ve let your finances get REALLY behind:
a) Surprise! You’re normal, and
b) Click HERE to read my post about how to get caught up on your accounting without letting the bad money emotions sabotage you.
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