Oftentimes entrepreneurs seek for ways to bring more money into their businesses. The first thought is usually to add a new line of service or develop a new product line. However, sometimes new found money is right under your nose! Sounds crazy, right?!?! If someone told you that cleaning up your accounting records would produce extra cash or improve your bottom line, would you believe them? Well, it most certainly could happen. Usually where there’s poor accounting there’s a loss of money!
There are a number of ways that financial improvements could be found in your business by simply keeping your books clean. Let’s explore a few of those options here:
- If you’re currently not reconciling monthly bank statements…start now. Banks can and sometimes do make mistakes and those mistakes can cost you money over time. Monthly reconciliations allow for catching any unexpected bank fees, erroneous or unauthorized charges and unusual pattern changes in account withdrawals.
- Good accounting records yield good financial data used in financial reports. This in turns aid in being able to manage the finances of your business efficiently. Proper money management saves you money, provides better insight into your finances which ultimately leads to making better decisions operationally.
- If you use an accountant for any form of accounting services, but you don’t keep clean accounting records, you are more than likely spending more money than you need too. Why? Take for example your utilizing your accountant for tax services: if your records aren’t in order or in good shape it takes that much more time for your accountant to get through the paperwork. More time equals more fees which costs you more money in the long run and in turn limits your business’s cash flow. Keeping accounting books clean from the start and preparing as much documentation as possible on the front end saves you money.
We want to hear from you:
What ways have you been able to find new money in your business? Feel free to post your comment here.