“Making good judgements when one has complete data, facts and knowledge is not leadership – it’s bookkeeping,” – Dee Hock
We try to capture moments that we will treasure for life. That’s why we end up taking videos and pictures, so that we never forget. We know we won’t be able to recall all of life’s events. The same thing applies in business. With all those financial transactions going on, it is hard to keep reliable mental notes.
Recording your business' financial story
Bookkeeping is the video recorder for your financial transactions. Bookkeeping is the key financial engine in your business. It is the core of your financial ecosystem, helping your business make money, prosper and survive.
If you don’t capture the moments from your financial transactions, then you have no number business story to tell. Financial records are words to our business story. Those words show us how much money we are making, where the money is going, helps us figure out what our financial future holds.
Information for all over needs to be recorded. Our paper receipts, e-mail receipts (damn you Amazon), and the ones keeping the office draw company
Making money in your business is one of your key goals and responsibility. If you don’t aim to do that, all you have is a time consuming and expensive hobby. You need to know some pretty important financial things. When do you need to know this? Not in several weeks or several months’ time, you need to know now!If you don’t capture the moments from your financial transactions, then you have no number business story to tell. Financial records are words to our business story. #Youpreneur Click To Tweet
Covering your bookkeeping basics
It's also worth noting that keeping good records should keep your accountancy and tax fees at a reasonable level. Accountants’ fees are influenced by the quality of your bookkeeping. Here are a few basic things to know and get to grips with:
- Cash coming in and out of your business
- What your money is being spent on
- Thumbs up profit or sad face loss on products, projects or services
- Whether budget targets are being achieved
- Getting paid on time
- Who owes what to who and by when?
Let me share some tips with you that will have you rocking your bookkeeping, connect with your business numbers, and help make you money.
Spend time setting up a system that you stick to on a regular basis. Choose a time where you can concentrate and have minimal distraction.
Minimize the number of people involved in financial record keeping. Control access to those records and information.
Treat the organization as separate to you, the individual. Ideally keep separate accounts for your business and personal. This separation focuses on how your business is performing, as well as keeping on the will show how your business is doing.
Put money aside in a separate account to cover your personal tax bill. As a crude rule of thumb, 15-20% of sales is average.
5. Connect to the Cloud
My favorite tip has been kept to the end. There is nothing stopping you from managing your business numbers, powered by paper and spreadsheets. In fact, it’s better than doing nothing.
If you prefer to liberate your time, inject some productivity and efficiency into your business, and make more money? If you want to connect with your numbers, navigating your business present & future with ease. Then embrace Cloud Accounting to do the powerlifting of recording and fetching the numbers for you.
Automation and streamlining processes happen with Cloud Accounting. Cloud Accounting records with ease & panache all your financial transactions. Your Cloud system can connect with you bank, web site, CRM, spreadsheets. Cloud Accounting does the powerlifting of record keeping. Processes can be automated, and bank feeds set up. Paper does a vanishing act, and your phone doubles up as a member of your accounts team.
Cloud Accounting brings information gold dust to your business. All from less than a weekly cup of coffee. You’ll see where you stand financially, what to improve, keep the tax bods happy, and tell your business story in numbers.
A good bookkeeping system can release the power of your numbers. Blended with your vision, inspiration and perspiration can only be a force for good.
Mahmood Reza is an accountant, business and tax advisor and all-around numbers rockstar that gives his clients jargon-free advice as he helps them make money and keep more of it. He runs his own management accounting service that helps provide accounting, business and tax services across many sectors.