Your bookkeeping isn’t up to date, it needs cleaning up, what do you do?
One Transaction leads to a money spend leads to an account balance which forms part of your Profit and loss.
The question isn’t what do you do, no the question is what is your attitude to your business?
Its true that Sales and the business of doing business is the most important part of your business but if you think your bookkeeping can wait, it may get out of control and costly to get back in control of.
The first step in getting your bookkeeping on track is committing to giving it a priority. Weekly is good, Monthly is imperative. Any older than that, we call your books Rescue Work.
Some of us only get the books done when the tax deadline approaches. Your books are more about than how much tax you owe and that is at the heart of why your books are in a mess if they are
You aren’t making business decisions based on your business performance if your books aren’t up to date. How can you, you can’t. Make better and quicker more reliable business decisions based on your books, if your books are up to date.
Updating your numbers and looking at them in your business puts them in context. You can compare performance from period to period. You can monitor costs. You can be confident of your bank balance.
Good Decision Making relies on your numbers being correct; these same numbers you choose as a reference for moving you forward, in the right direction.
If you’re not monitoring your key metrics how can you be sure your investments are correct, are working for you, not against you?
Cash flow can only be monitored by way of bookkeeping.
Use your numbers to Grow Your Business
Up to date bookkeeping means you’ll have numbers that you can be confident to base your decisions on.
Every single transaction is part of a report which is part of the Profit and Loss and Cash Flow Reports.
Cost of Goods Sold, Sales and Payroll. Accounts Payable, Sales on Credit (Accounts Receivable), Cash at Bank – these are accounts but in a report, the calculation of your Gross Profit / Sales gives you your Gross Profit Margin.
Sales less Cost of Goods Sold gives you your Gross Profit
Gross Profit less Overheads equals Net Profit
Net Profit / Sales equals Net Profit Margin
Which business metrics give you the information you need to help you keep track of the direction your business is taking?
Consider Professional Bookkeeping Help
If your books are not up to date, you may be able to do the work to get them to an acceptable state to make sense of the numbers OR, you may want to consider seeking professional bookkeeping help.
An experienced bookkeeper will save you a lot of time and frustration.