March 31, 2020

If You Fail to Maintain Bookkeeping Records

Small Business
By: Ronald B. Allen

What Happens When You Fail to Maintain Proper Bookkeeping Records

Small business owners often struggle with bookkeeping. There are many tasks involved and they can be time consuming. There is a reason that bookkeeping is taken seriously by successful businesses. When people open a new business they think they can do everything themselves, this is impossible. A trusted, experienced bookkeeper is essential to any small business to keep your records accurate and up to date. Otherwise, you could be facing serious problems like the ones listed below.

You Don’t Know How Your Business is Performing

This is something every business owner needs to know. Are you facing huge losses and need a new strategy? Or are you doing well and need to start thinking about expanding? If you are a business owner, you should always know the state of your business. You should know how much a profit you make or how much of a loss you may incur. A business owner should never be surprised about something happening in their own business – unless they are negligent.

Proper bookkeeping gives you an accurate status of your business whenever you want. Want to know how much stock you have left? Check the books. Want to know why there is a loss? Check the books and see what is costing you too much. You cannot run a successful business unless you keep accurate records.

You will face inventory losses

Inventory loss is a sad reality that every business owner must face. Did you know that most big retailers have an ‘acceptable’ rate of inventory loss?  The problem is much worse for small business owners, and poor record keeping makes the problem worse. Your inventory may go missing and you don’t even know it. Proper recordkeeping allows you to tackle this problem head-on. If you think you are losing products, just take a stock of what you have right now and check your records to see how many there should be.  

These two reasons are big enough to make any business owner realize that they need to start keeping proper records. If you are worried about how costly it will be to hire an accountant or how difficult it will be to start learning basic accounting yourself, don’t be. Simply use QuickBooks – it is one of the most intuitive bookkeeping applications available, and you will be able to use it easily. You will just need some help configuring it, but once it is setup it is simple to use. Exigo can also help with this!

At Exigo, our team is made up of Advanced Certified QuickBooks ProAdvisors who can help your business with full service bookkeeping, QuickBooks setup, reports customized to help you make important decisions in your business, data conversion, file review, and so much more! Our team is also certified in the Profit First Methodology which means while doing your books, we will use the Profit First Methodology to uncover and maximize your businesses profit.

Set up a Free session with on of our QuickBooks ProAdvisor to decide on your QuickBooks needs and help implement them.

Want to learn more about Profit First? Click here to get the first 2 chapters of the book "Profit First" for FREE. Provide your name and email and we will send you thr first 5 chapters instead!

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