Small Business Accounting – Make Or Break Your Business

April 1st, 2022 by admin Leave a reply »

After working with small businesses for the past 5 years, I have come to conclude that there are three crucial parts to each business: sales, production, and accounting. Each one of these is extremely important to the success of your business. Just try doing business without one of them… some of you may snicker, but there are plenty of businesses that are trying to run their business without proper accounting, production, and even sales. I am always awed at those businesses that have gone a year, two years, or even 10 years by basing their success off of the balance in the bank account with no system in place to account for their company’s’ actual performance. Sooner or later the debt obligations, or poor management from lack of knowledge, catches up with them. I hope you don’t fit into this category.

If you do, then I guess you can consider this your warning. I highly recommend that you seek out a professional bookkeeper or accountant for your small business. These professionals can help you take control of your business and help you see the complete picture. One philosophy that I suggest for every business to operate by goes something like this, “It is impossible to control or manage anything that you do not or cannot measure.”

What does this mean to you? Well if your business sells product, do you know what your margins are? How much profit do you make from the sell of each product? Can you afford to hold a “sale”? Success can’t be measured by the balance in the bank account, because there are so many other factors that can easily drain the account in no time. Then what? You find yourself scratching your head and wondering what happened to your “successful” business.

There are some great solutions out there for you to take advantage of. You can take control of your business and manage it by the numbers. Now, from my experience, most business owners are really good at two of the three areas in their business: marketing, and production. The accounting side of most businesses is lacking, to say the least.

I invite you to take a closer look at your business and specifically the way you manage your business. Do you have proper accounting practices in place? How often are you looking at financial statements and measuring the profitability of your business? I hope the answer isn’t once a year, or “my CPA does that.” There is great potential out there in the marketplace for any small business to succeed. It is my hope that you find yourself achieving the dreams you set out to achieve.

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