By Linda Brown, Spire Business Inc
Many people feel they are not good with numbers, so it’s no surprise that they tend to ignore their bookkeeping. In the past, accounting had a lot to do with compiling numbers; that is not true today.
Entrepreneurs and small business owners start their business because they have passion, knowledge, or skills to share with others- not due to their love of bookkeeping (unless you’re a bookkeeper or accountant). But even as an accountant, our books tend to get behind. It’s the adage about the cobbler’s children having no shoes.
With that said, we know the importance of why bookkeeping should be kept current:
- It enables you to make sound financial decisions
- You will have an idea of what you owe in taxes, before the due date
- It makes tax time more relaxed and with less stress
- To protect the business in case of an audit
During the 1980s, bookkeeping changed. As small businesses transitioned away from the green ledger paper and pencils to computer spreadsheets like Lotus 1-2-3 (yes, the dark ages to many of you), then to computer software such as Quicken.
With today’s virtual apps and programs, bookkeeping has become even easier and more accurate! It can be done anywhere there is a connection to the internet and little reason to let it lag.
By choosing an app that can connect to financial accounts (banks, credit unions, and credit card companies), it becomes less about the numbers or data entry, and more about the categories!
With the advance in technology, many banks and credit card companies have created a secure, encrypted process to automatically download transactions from their institutions to the apps. You just have to set it up!
Then when you log into your bookkeeping app, all you need to do is let the app know why the money came into or went out of that account.
Does this sound doable? It can be!
Although it can be confusing to set up a bookkeeping system, as it should be individualized to a specific business, the workflow to maintain the business should be quite simple to master.
I recommend that you invest in yourself and your business. Hire a good accountant or bookkeeper that knows your industry to set up the app and to train you on how to use it. A good side benefit, if you hire an accountant, they will be an excellent guide for you and a resource that has your back for when you get stuck.
Fair warning, there will be a learning curve- the same with any new skill you develop- but the more you do it, the easier and faster it will become.
Concerned about the time it will take?
The majority of service-based small businesses that I’ve assisted in establishing a bookkeeping system (using financial downloads) can stay current by dedicating 5 to 15 minutes a day.
Are you intrigued and want to learn more about how to manage your bookkeeping in minutes a day, we will be happy to chat with you.