Bookkeeping is not something that you really enjoy doing.
For most people, it’s really not that fun to do. It’s boring, tedious work. And you’re afraid that you are going to do something wrong.
When you do something wrong, you may end up owing a lot more money.
You really never thought about having to handle the bookkeeping and keeping your money stuff organized when you started your business.
You just wanted to do what you were really passionate about and share that with the rest of the world.
Just like so many other entrepreneurs.
Unfortunately, though, bookkeeping is a big part of the deal when it comes to your business.
While you may see bookkeeping as just categorizing the numbers of your business into certain categories, it’s actually much more than that.
And bookkeeping is very helpful to you as a business owner.
How Can Bookkeeping Help Your Business
The process of bookkeeping can be done in about 15 minutes every week if you just keep up with it.
Once you realize that it’s really not that hard and it can be quite easy, checking in once a week to get your bookkeeping done will be something you may actually look forward to.
Okay, I know I’m a nerd and absolutely love doing bookkeeping. I love checking in and seeing where the money was spent and what was bought to bring in money.
I love being able to see the patterns and seasons that happen in a business.
Your Patterns and Seasons
Your bookkeeping will always reveal the patterns and seasons that happen in your business.
These help you see when clients are buying from you more often.
Are there certain months that more people buy from you?
Are there certain days that more people buy?
What about the promotions that you did? What made more people buy?
What products and courses and services do people buy more from you?
And also look at the patterns and seasons with your expenses.
Are there certain things happening in your business and/or personal life that make you spend more money?
Are there specific days of the week or month that make you spend more money?
Are you paying for things you aren’t even using?
You can always learn things about your business by seeing these patterns and seasons.
But when you don’t do your bookkeeping on a regular basis, you won’t always see these patterns and seasons as they happen.
Maximize Your Profits
Your bookkeeping can also help you maximize your profits.
If you aren’t regularly looking at your income and expenses, you won’t really know what your profits are.
So many business owners have no idea what their profits are, or even how much money they are spending in their business.
All they see is that there is still money in the bank, so they have some money to spend.
Profit and money in the bank are not the same thing.
But the financial goal of a business is to have a profit month after month.
When you regularly look at your bookkeeping, see where you are spending money and actually plan where to spend your money, you can begin to maximize your profits.
When you have higher profits, you can also pay yourself more money as well.
Make a Cash Flow Plan
When you know how often money is really coming into your business and where it’s coming from, you can make a cash flow plan for your business as well.
You obviously want cash to be flowing into your business on a regular basis. And when you have a cash flow plan in place and know where the money is coming from, it’s much easier to plan this.
Once you have a cash flow plan in place, the only other thing to do is to create your marketing plan to continue to make the sales and bring that cash in.
It can tell you how much you owe in taxes
It really is possible to plan for your taxes ahead of time.
And you do this by getting your bookkeeping done and looking at your profits.
You always pay taxes on your profits, so when you know your profits, you can easily calculate what you may owe on your taxes.
Bookkeeping is so much more than a tedious boring task
I know that I may be one of the only people on the planet who actually enjoys doing bookkeeping. But it really is so much more than a tedious, boring task that needs to be done for your business.
It is a way to look at and evaluate your business progress.
It is a way to see where money is actually going in your business.
It is a way to create a cash flow plan for your business and keep the cash flowing in.
It is a way to know how much tax is due for your business before tax season even arrives.
If you really don’t want to do your own bookkeeping, then it’s definitely time to outsource it and get someone else to do it for you.
Bookkeeping needs to be done regularly and from the beginning of your business.