The Bookkeeper Bath: How To Clean Up Your Financial Records And Polish Your Business

The business world runs on numbers

The business world runs on numbers. But not all businesspeople are great at collecting, storing, retrieving and publishing their financial figures. Each executive must decide what is best for their business. Either learn how to keep better financial records or hire someone to do it for you. Ignoring your financial records will come back to bite you at some point whether you are dealing with a funding source, the government or the legal system.

Several key stakeholders have a strong need to get accurate, consistent and timely financial information. For example, bankers want to see the latest financial reports while reviewing a loan application. Investors demand an accurate balance sheet before they write a check for desperately needed equity capital. The tax collector wants to verify its share of your revenue pie.

Today the typical business executive is overwhelmed with the demands to maintain accurate accounting records and produce timely financial reporting. Your time spent on entering, reviewing and publishing financial data is time lost for working ON the business. Would you like to spend less time working IN the business and more working ON growing your sales, revenue and customer base? How can you leverage other resources to free yourself from the chains of financial record keeping?

Bookkeeping and accounting services exist for the sole purpose of working with financial records. Business executives and owners can leverage their expertise to promote a better business life. The great thing about organized financial records and professional financial statements is the positive effect they have on your financial stakeholders.

Your lender is eager to get regularly published financial information about your business. They want the information in a clear, consistent and factual format. Your lender can become more confident about your business risk profile and be a better advocate for your loan application when it passes before the bank credit committee. When your bank is more comfortable with your financial condition they tend to call and visit less often. Lenders get nervous and dig deeper when information is incomplete and delivered late.

When your business is described as stable it can open opportunities. Bankers and investors seek out those prospects that are more creditworthy. This is especially true during financial crises when loan and investing underwriting gets tougher. Sometimes funding sources will call you to take their money because your financial records are complete and accurate which paints a great risk profile.

Your accountant appreciates access to complete financial records more than most stakeholders. Their job is much easier when they can prepare certified financial statements and tax returns using well organized financial data. Today sophisticated bookkeeping software easily compiles financial data for quick access as needed by different people inside and outside of your organization. It would be great if your tax accountant sent a giant fruit basket to you after tax season as a thank you for making their job easier.

Your employees are one of the most valuable assets to drive sales growth. Their time is much better spent working on the business, meeting customers and generating sales than sitting through budget meetings with disorganized financial data. Imagine the profit gains that could be made with time saved in budget meetings if you had a well organized financial record keeping system. You could make better and faster business decisions using well constructed financial data.

You have worked hard to build your customer base.

You lead like the captain of a ship looking toward the horizon for approaching danger. Modern ships have sophisticated electronics to detect changes in weather, ocean conditions and traffic. The captain takes early corrective action to avoid known hazards. Business leaders can navigate with greater confidence when they have complete and timely financial data to spot adverse trends within their industry and among their customers. Timely financial reporting can help you respond early to a bad trend in orders and hold onto a big customer.

Clearly presented and accurate financial data can reduce your business risk profile. Debt and equity capital can become more accessible at better terms. Your CPA can be more accurate with your tax returns which may reduce your audit risk and lower your accounting fees. Business planning becomes more efficient with shorter financial forecasting meetings. Key employees have more time to leverage their talent and grow sales. And most importantly you can respond to financial trends faster and avoid strategic mistakes. Bookkeeping and accounting services, financial software, and your own record keeping efforts are the best tools for excellent financial reporting to capitalize on these business opportunities.

by: Michael Shelton

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