17 Mar The Importance of Your Bookkeeping Practices
A lot of business owners struggle with the demands of bookkeeping and accounting within their businesses. I see this a lot and I have struggled with this myself in my own businesses. As an entrepreneur, you’re most likely in business to follow your passion or your industry, not to keep records. The problem is, if you don’t take the time to take care of the little things in your business like bookkeeping, the big things won’t have the support they need for the business to be successful either.
I recently read an article By Mark J. Kohler at Entrepreneur.com that highlights this struggle and gave some tips for business owners to overcome the bookkeeping challenges. One of his first tips was to hire someone to do the bookkeeping for you. I know a lot of entrepreneurs are a one-person show and they don’t have a lot of extra cash flow to pay a bookkeeper. But it’s a catch-22 because many business owners don’t have the time or the knowledge to do the books on their own. And that’s what lands them in trouble.
I firmly believe in the merits of hiring the right team members to balance out your organization. If bookkeeping and tedious records-tending isn’t your strong suit, you’ve got to have someone on the team that is good at those things. Otherwise you’ll get yourself in a lot of trouble that will cost you a lot of time and money in the long run.
However, just because you hire someone to do the bookkeeping for you doesn’t mean you’re off the hook. You as the business owner still have the responsibility to review the records and reports for accuracy. You still have the responsibility to be involved in the bookkeeping process. You still have to have a basic understanding of accounting principles. If you don’t have that understanding, you need to take a class somewhere that teaches these basics so you can ensure accurate reporting and prevent errors or fraud.
If you’re a business owner, you can’t afford to neglect the accounting piece of your business. You either need to find ways to keep on top of it or hire the right team member to fulfill that function for you. Make it a priority to gain the knowledge you need to effectively oversee the business side of things so you can focus on the fun part of your business.