Wilmington NC Bookkeeping Basics and How It Can Determine Your Success
Accurate bookkeeping is an essential part of effectively managing and growing your business. Unfortunately, most small business owners think of it as a chore to be done during the little time they have left at the end of the work week. Many do not realize that a solid bookkeeping system is the foundation of your company’s growth and success. Between operating your business, marketing your business, and spending time with family and friends finding the time to keep your financial records up to date may feel like a daunting task, but it can make or break your small business.
Better Manage Expenses: A proper bookkeeping system will accurately track your expenses. By being able to see your total expenses, you will have the opportunity to see if you are going over your budget. A good bookkeeping system will make sticking to your budget much easier and by better managing your expenses you can properly increase efficiency and improve cash flow.
Accurate Taxes and Maximized Deductions: Accounting is one of the more complicated areas of business, with many rules and regulations. By putting your financial information in the right expert’s hands, you can be assured that you are getting everything done correctly and in a timely manner. Poor tracking of your income and expenses makes it difficult for even the best tax accountants to prepare your taxes accurately and on time. If the government realizes that your company overestimated its expenses, there will be some high financial costs to bear.
Promote strategic thinking: Most small business owners are only able to imagine the here and now, and focus on a week at a time at the most. Strategic thinking separates the amateurs from the pros, and being able to view your business and surrounding markets is where you will find the best opportunities for your company. Good bookkeeping will not do that for you, but it will provide the necessary tools that will allow it. By looking at the correct financial reports you will have the knowledge of how your business is doing in all areas.
Make informed decisions: As a small business owner, the future of your company is in your hands. Being able to make informed and plausible decisions is one of the most important skills needed in business. Can you afford this opportunity? What are the strong areas of your business that you should invest more in? What are the weaknesses of your business that you need to think about discontinuing? Good bookkeeping will allow you to have the knowledge to make these very important decisions. Without the proper reports, your decisions are just guesses.
Understand you accounts receivable: Accounts receivable is the money a business is to receive because of goods or services they have provided to customers. This is where a majority of the amount earned by a business comes from. Following up on receivables and tracking them correctly you can improve cash flow, manage payment times, and reduce debt. Not following receivables also makes it very possible you will miss a client’s payment. How can you tell if a client has bills due if you are not keeping the proper records?
Understand your accounts payable: Accounts payable is the money your business owes to vendors for services or product. In other words, all bills and invoices you receive fall under this category. Keeping track of these bills will help you take advantage of reduced rates for on time payments that can save your business money and improve your business credit rating. Timely management of this account will enable balance paying bills and optimize cash flow.
Bookkeeping is an essential part for a small business, and BOSS is proud to be able to help. Without bookkeeping you are reacting to the present, and looking backwards. With proper bookkeeping help in Wilmington NC you will be looking forward and reach your goal of growth, and profitability. Getting a handle on your bookkeeping will be the first step in bring your business to the next level.
Wilmington NC Bookkeeping
BOSS is a growing firm of local business advisers who are committed to providing responsive service, strategic thinking, and competitive pricing to our clients. If you’d like to learn more about running a small business or would like Wilmington NC bookkeeping give us a call at (910) 338-1198, stop by our new office located at 3901 Oleander Drive, Suite G in Wilmington, or click here to fill out our online contact form. We look forward to hearing from you!