Did you know that bookkeeping is an absolute must for your business? Probably, most people know that there are only a few certainties in life like death and taxes. Many believe that the importance of maintaining business finances is mostly due to the certainty of taxes. Taxes are a big part but it’s not the whole picture.
Over the next three weeks I will be going through a three part series on how to gain value using simple bookkeeping strategies. I will teach were best to look for cash availability, how to save time by using reoccurring options provided in your software, and lastly, how to evaluate the health and possible future of your business.
Lets begin by learning how to review your available cash. It can be tempting to do a quick glance at your bank statement to see what your balance is. Once you see that number it’s easy to hit click-to-buy. Checking your bank account for cash flow evaluation versus using the tools provided in your software actually prevents you from seeing the whole picture and risks making business decisions that will lead to disaster at some point.
Instead, try using the budgeting tools in your accounting software like an envelope system. Make sure you have all the categories set up in a way that will make your CPA’s life easier and allow you to evaluate essential pieces in your business. Then select the expenses or profits you want displaying in your dashboard. Now you are able to see the heart of your finances: what is being spent, where it is being spent, and how much you have left to allocate. You are leveraging bookkeeping to save you money, keep you on track, and become creative in your business strategies.
See you next week to learn more on how to leverage bookkeeping for your business success.