I've said it before and I'm saying it again, entrepreneurs wear SO MANY HATS!
Small business owners often wear the "Accountant" hat but are not always trained in accounting. In fact, the majority of small business owners do not have a dedicated full-time accounts manager. This can result in incorrect entries, inaccurate financial statements, and other costly mistakes. But fear not, I have some tips that can help. With the right approach, cleaning up your accounts can be a breeze.
Here are 3 tips to get you on your way to a fresh start.
#1 DETERMINE WHETHER YOU HAVE A PROBLEM
Even if you think things in your account department are running smoothly, it doesn't take long for things to take a turn, especially if you are not an accountant!
Is your current set up:
- Costing you money
- Eating up valuable time
- Causing you stress
If you can answer yes to any or all of the questions, chances are there is a problem in your accounts department and you need assistance.
#2 IDENTIFY THE TROUBLE AREA
Okay, you have determined that you have a problem, now what? Let's identify the trouble area.
Are you current in the following areas:
- Bank statements are reconciled.
- Credit cards are reconciled
- Financial obligations are being booked properly
These are just a few of many questions you can ask to pinpoint the trouble areas. Your best bet could be to bring in a professional to consult, assess and fix any accounting issues.
#3. BE PROACTIVE
Okay, you have determined you have a problem, you have identified the trouble area, now what? Let's get proactive and take practical steps to sort out the issues.
You can start by:
- Setting up a proper accounting system
- Track past transactions - record them properly and reconcile them
- Set up & secure procedures to ensure that things are being handled properly moving forward
These are just a few important things to help you get started on your journey to a fresh start.
If you are going to be handling your own accounts, discipline and consistency are key. It will take a lot of hard work, dedication and maybe even a few swear words to get things back on track.
If you are feeling overwhelmed with the idea of taking on the challenge of reorganizing and cleaning up your accounts, I am here to help. It is important to get help when you need it, before the situation worsens. One of the best ways to see results is to bring in a trusted advisor. I offer full cycle account management and I can take the stress of this task off of your shoulders.
I am your Partner in Profitability. Contact me today.
306 520 4009.