It’s pretty overwhelming when you think about it – one out of five new businesses are destined to fail. The top reasons for small business failures all tie back in some way to financial management. Cash flow, cash management and just knowing the numbers are at the crux of the problem. The reasons for that are probably pretty simple: many small business owners don’t go into business to do bookkeeping and be a financial analyst. They go into business to provide a product or service to the masses. That’s what really floats their boat.
But to keep the boat afloat, every small business needs to pay regular attention to the books and the bookkeeping. This is not only important for the operations and cash flow, but also for:
- Proper reporting and payment of taxes
- Planning and setting sales goals
- Keeping expenses under control
- Identifying equipment and manpower needs
- Charting growth and development
- Creating reports like profit and loss statements and balance sheets
So, what’s a small business owner who detests sitting at her desk creating invoices and writing checks to do? The same thing the business owner who hates to deal with keeping receipts and tracking expenses does: get the best software and hire a bookkeeper.
Now that doesn’t have to mean a full-time employee. No, in fact, bookkeeping services like the one offered by The Payroll Department are consistent and effective, yet outsourced. The best part – they don’t cost you the oars you need to paddle the boat.
A bookkeeper can keep:
- Your invoices sent out on time.
- Your accounts receivable organized and you can see who owes you money.
- Your accounts payable organized so you know exactly who you owe at any given time.
- Monthly reports accurate for planning and decision-making purposes.
That’s only the tip of the iceberg, but you get the idea. In order to run a successful small business, you have to know WHERE YOU STAND. If invoicing is backed up, receipts and deposits languish on your desk and people owe you more money than is reasonable, you need to know. If you don’t, you could be killing your business – from the inside out.
Don’t bail water from your boat to stay afloat. Find an experienced bookkeeper to keep your oars in the water and rowing along.
Contact Teresa Ray or Grace Walker at The Payroll Department to see how much easier it will be to glide down the river with good bookkeeping in your business. Contact them online or by calling 317-852-2568.
-Elaine of The Payroll Department Blog Team