Think about the last time you went to a football game.

 See the striped field, smell the nachos, listen to the cheers, smear on some face paint, and squint to see the minuscule players far below.

And notice the scoreboard.  

How useful would it be if the scoreboard showed the stats from last week’s game? Or even if it showed the stats from the current game, but they were from the very first down and you’re now in the fourth quarter? It would make for a very confusing game, and could cause problems for the team if they glanced at the numbers and made the wrong play as a result!

The financial stats for your business are the same way. If they aren’t accurate and accessible, you won’t be able to play your game to the fullest of your ability.

There are four things that a great bookkeeper (like me!) can tell you about your business at all times (or that you can see right away when you log in to your bookkeeping software that has been kept all neat and tidy by your great bookkeeper!)

Who Owes You Money

This is important, obviously, because you want your money!!  And you can’t run a business on no money.  You probably have a way to track who owes you what, but accurate bookkeeping is just another safeguard. With the click of a mouse you can see who owes you, if anyone is overdue, and when a payment is due.  Your bookkeeper may even take over the job of making sure you get your money – which is one more (somewhat unpleasant) task off your plate!

When Bills Are Due

This is not as fun as getting money, but it is equally important. You need to know what money is going out of your business to prepare accordingly. A great bookkeeper can tell you which bills are due when, which is important for your cash flow. If you have a bill for $5000 due in a month, but have an opportunity to make $10,000 in new business in a week using the $5000 you put aside for that bill, your bookkeeper can help you evaluate that. Knowing what bills are due helps you manage your cash more intelligently. It takes the panic out of your business, and keeps you from being the one overdue on your bills!

What Cash is Available

We touched on this above, but it is important to know how much cash you have.  What if a great opportunity comes up, for example, some equipment you need all of a sudden goes on sale on Craigslist for a great price? You need to know how much cash you will have after paying all your bills and other expenses. And you need to know if there is cash that has been earmarked for a certain bill, but that you can use in the meantime to increase your profits. If you can glance in your books and see that yes, you have $8,000 for that equipment, you can jump on that sale.

Cash doesn’t necessarily mean paper $5’s and $10’s. It refers to the money in your bank account that is actually available to your business. You could use actual cash, a debit card, or a check and still consider it all to be part of your “cash on hand”.

How your business is doing

Money in, money out, money in, money out… but how is your business really doing? A great bookkeeper can help you figure that out.  They can show you the difference in revenue from this time last year to this year.  They can point out areas where your spending has really increased, and help you set up a budget to achieve your goals. They can help you figure out if you can afford to hire another employee or expand into a bigger space.

These four things are at the heart of what makes a bookkeeper much more than just a number cruncher and organizer.

A great bookkeeper, like myself, provides you with useful, reliable, and timely information to help your business succeed. We are on your side, interested in your business and in your growth. We are on your team and will cheer you on! (Though probably without the crazy face-paint.)

Your financial statements are the scoreboard for your business. You’ll want to make sure they are up to date, accurate, and will serve you well. Don’t lose your game because of a faulty score board!

Which of these four reasons is most appealing to you? How would accurate bookkeeping help in your unique situation?