If you have a small business, you are probably familiar with the struggles of understanding how a business works from the administration perspective. Most people get excited at the idea of having a small company and get the idea that all they need to do is find something that they love doing and they know about, and magically, this will become into a successful business without much effort, most owners will say “it is nothing like that” when it comes to running a business, so there’s much more than just be passionate about what you do. For the inexperienced and smart, outsourcing the professional accounting and bookkeeping services was their first good business decision, if you didn’t and you are struggling, you may want to think about this option yourself.
Why is it so important to have a professional doing your accounting and bookkeeping? Because everything has to do with money, and it is not very hard to understand that if you make the wrong choice with your money, your chances of losing it are high. Accurate and solid financial information will always help you have a clear view of your business health and you will be able to decide the next steps in order to have a successful company.
So, if you are among those business owners that have no idea how much money they actually do (this is not only your cash or your bank account) or where the money is located at any given time, have no filing system in place, buy inventory “whenever is needed” instead of a scheduled purchase and never been able to fully understand the concept of profit margins, then, it is time to bring the big guns in the business fight and straighten up your act.
Don´t be afraid of the costs, of course you will have to pay a professional service to take care of the mess and set up all the necessary controls and systems to make it right, but in the end, you’ll get results that will directly reflect on your bank account, so don’t look at it as an expense, look at it as an investment.
Even if you think that you are losing money, it doesn’t mean that you actually do, especially if you don’t have all the necessary information to support this statement, you may have too much money invested in your inventory, or you may be paying for staff that you don’t need, or the conditions of your supplier could be better, and even your tax return could be better. The only way of knowing this is if you have a good accounting and bookkeeping system in place.
So, don’t give up just yet on your business, give it a try with the accounting & bookkeeping services of an expert firm and find out if you should really give up or if your problems are just a matter of better business practices.