Are there times that tight finances keep you from really growing your business like you envision? Perhaps you’re putting off investing in tools that can make your production faster. Or there are staff members you think you can do without, like an accountant. Your reason is that you can enter the amount of money you make and what you spend in the books. That’s enough for now.
Think again! A business cannot grow if you don’t know “why” the money is flowing the way it is. If finances are tight, there’s a problem in the money coming in or going out. And if you don’t identify the problem your business will always be struggling.
If you are going to own or manage a business, then you have a responsibility to learn how to speak the language of business. The language of business is accounting knowledge. You can’t afford to dissociate yourself from understanding the meaning of your financial statements that tell you the “why”. If you’re trying to do it alone, or solely rely on a novice for completely accurate financial data, then you are asking for trouble.
How involved you become in the accounting process will be determined by time schedules, your mental pre-disposition, desire for control, cash flow, and so forth. One solution, if you can afford it, is to hire an internal accounting staff to prepare financial statements on a monthly basis and have an external accountant check them over.
Another common solution is to prepare part of the compilation yourself, such as preparing a sales journal and a cash disbursements journal and then hire an outside accountant to prepare a bank reconciliation and the financial statements for you. Some do this on a monthly basis, others quarterly. Some business owners do the books themselves all year and turn them over to the accountant at the end of the year to verify the balances and do the depreciation entry for tax purposes.
There are numerous ways to work with an accountant. Regardless, you should learn enough about accounting to be able to communicate intelligently with your accountant. Since you are intimately involved in your business you may recognize danger signals that not even your accountant will see.
In any event, it’s always a good idea to maintain a relationship with an accountant no matter how small your business. The question is: Are you ready to make an investment that moves your business forward? Do you want accounting services that are tailored to your specific business needs? Then, please contact me and let’s talk about how improved accounting practices can increase your bottom line.
We are open all year, providing full accounting services and products. Scheduling an appointment with us is easy, just CLICK HERE and make an appointment at your convenience.
We can also be reached via our social media outlets on Twitter, Instagram & FaceBook @micahbyrd. We look forward to helping you with your business accounting needs. Our office number is (770) 573-4125.