The Forgotten Value of Bookkeeping
It's a time hole, a monotonous, laborious, dreaded and grueling process. Why do small businesses owners spend so much time on bookkeeping? What is the value gained in spending hours on end getting the numbers to line up? These are the questions that many small business owners ask themselves, and rightfully so. We know it needs to get done, and it is part of doing business, but so often we get lost in the details, and fail to see the value that up-to-date, accurate bookkeeping provides our business.
As small business owners, we need to understand the value in keeping these clean records. We are putting hours of work, and monotonous details in this system. We need to ask ourselves, what is in it for me? The answer is simple, like any input into our business, we should see a valuable “output”. In this case, the “output” is valuable insight that provides clarity on the health of your organization, and even how that forecasts moving forward. This is the key hurdle for small businesses to get over. If we are not looking at the books as the most accurate barometer of our business, we will never truly understand what makes out business successful.
Ultimately, our books are our scoreboard. This is the value that small businesses need to see in their bookkeeping. We have all heard, “numbers don’t lie”. And that’s the beauty of bookkeeping. We can have great business plans and strategies, and a lot of the time, those plans and strategies lead to success, but if we don’t have the numbers to back it up, we need to take a closer look. The financial "output" (Financial Reports, Forecasting, KPI Analysis, Benchmarking, Budget versus Actual Analysis) should be the most critical guiding force in the strategic business decisions that we make as small business owners.
If you are not using these outputs to guide and focus your business decisions, you are missing out on the primary tool at your disposal to grow your business in ways you have never considered. If you need help setting up a system to make this possible, or a full-service bookkeeper to maintain this information, please reach out to us. We consider ourselves as more than bean counters, we are YOUR accounting team. We love lifting this burden from small business owners, and providing valuable insight that will propel your business to new heights. Click Here for more information on how we can help.