How Bookkeeping Will Help Your Small Business Grow

how bookkeeping helps your small business grow

How Bookkeeping Will Help Your Small Business Grow

(More easily than you think!)

I love working with small business owners. They’re excited about their future and the direction their businesses are going. 

Many are in a position where they’re just getting started and loving the process – their optimism and excitement just lights up my heart!

But occasionally, I work with a small business owner whose business grew so fast that they couldn’t (or didn’t know to) keep up with their books. 

They’re a few (or more) months into their business and have NO IDEA where they are financially, where they’re going or what that looming tax season will be like. Heaven forbid it includes an audit (PANIC MODE!). 

And worst of all – their business suddenly stopped growing and they couldn’t figure out why.

Setting up a bookkeeping system is arguably the most important thing you can do as a business owner if you want it to grow. What business owner doesn’t?

The reason I think so is:

???? You have to know where you are to know where you’re headed.
???????? Regular bookkeeping means that it’s easy to find and fix mistakes.
???? Gaining investors (or investing yourself) is so much simpler with clear records.

1. Know Where You Are

Imagine running a marathon and not knowing how far you have to run ???? Every single mile you run, you’re thinking to yourself “When is this supposed to end?” You have no idea that a marathon is 26.2 miles. You’d probably only make it a handful of miles before just giving up.

That’s what running a growing business is like without having a bookkeeping system in place. 

The only way you can run that race is to know where you are and where you’re going!

In a small business, this means that you have your books in order and you have a budget in place that you’re actually following. 

What does it mean to have your books in order? Simple! It means that you know what your expenses are and what your income is. You have a system in place to record all of those numbers in a way that is clear and precise.

This is where growth happens – you know how much you’re making (income), how much your business costs to run (expenses) and what is leftover (profit)!

2. Mistakes Are Easy to Catch

Keeping your books up to date allows you to see what’s coming in and what’s going out, but it also helps you catch mistakes.

We’re all human and will occasionally make mistakes in recording our business’ numbers. More eyes, more often on those books means that when those inevitable mistakes happen, they’re caught quickly.

And most of the time, those mistakes could cost you your hard-earned money and save you from a massive headache if you ever get audited. Yay to saving money and avoiding a train-wreck!

3. Investing 

When you have that clear idea of your income, expenses and profit, it’s much easier to make decisions about investing in your business to help it grow.

Financial decisions like purchasing new equipment like a laptop or hiring more staff as you grow aren’t stressful because you can see from those beautifully organized records that you can afford it (or not).

If you’re looking to attract investors to put their hard-earned money into your business, you’ll need clear records of how your money is working for you. This will instill confidence in your ability to handle their money well. 

Whether you’re just getting started or have been in business a while, keeping your books straight is essential if you want to grow. The only way you can grow is if you know where your finances are and you know where they’re going.

To get started today, join our free masterclass where I go over 6 things every business owner NEEDS to know when getting started and the first step to take today.

If you have any questions, send me an email at hello@masteryourfinancestoday.com and I’ll help you find the course that’s right for you!

How bookkeeping will help grow your small business (more easily than you think!)

Share:

Share on facebook
Share on twitter
Share on pinterest
Share on linkedin

More Posts

Get your Free Accounting Checklist!

Enter your email below to download your free accounting checklist!

Take the MYF Quiz!

Are you LOSING SLEEP wondering if you’re doing everything right? Take the quiz and know where to start!