Why Bookkeeping is Crucial for Your Business

July 8, 2021

How is your bookkeeping done? Do you know?

It’s important as a business owner to know this process like the back of their hand – even if you’re not doing it! That’s right, if you hire a bookkeeper, that is NOT the time to check out & ignore what they’re doing! It’s an opportunity to learn as well as have them support you in thriving your business financials.

Bookkeeping: it’s crucial to a successful business – so how exactly is the best way to go about it?
Here’s where we come in – we want to give you the best advice for getting your bookkeeping done one of three ways:

DIY 
No, you don’t have to pinterest this one – it’s not that kind of DIY!A robust Excel spreadsheet or simple accounting software can help you manage your books. Make sure you track supplier/biller names, account used, expense type (e.g. office supplies, raw materials), date, and amount owed.

Outsource
Either to a part-time bookkeeper or a team of professionals.It’s a personal matter whatever you choose, just go with what’s best for you (and will keep you from reaching for the brown paper bag). Whether you’re doing your own bookkeeping, or you have hired someone else, it’s still your job to ensure your books are being kept correctly.

Hire in-house support
When your business is large enough to warrant it, you can hire a bookkeeper to work in-house.Staff and key business partners will help drive your plans and goals. Set clear expectations. Have a thorough job description and project tasks to your staff so they know their key role.

Now that we’ve got that covered, let’s talk accounting software (I hope you didn’t think this was an old-school pen-to-paper situation! You don’t have to be a math major for this).

You should revisit your accounting software to determine if the system is right for your business—and make sure you revisit again in the future. This is an important step whether you’re doing your own bookkeeping or if you’ve outsourced. New features and softwares are always launched, so you’ll want to the best system. 

After you’ve determined your software is a-ok or needs an upgrade, there are three factors to consider:

Costs. Bookkeeping software may include advanced features such as expense tracking, sales tracking, recurring invoices, and more.You want to do your research to make sure you’re getting the features you will need and can utilize for the best possibly integration into your business.

Usability. Make sure the ease of use and accessibility works well for your team and management style. It’s great to stay updated and learn new things, but if the software is over complicated and not user-friendly, its best to get something that will be learnable for not just you, but your team.

Features. Many factors determine needed features, including the size of your business, industry, and record-keeping requirements. It’s important for you to evaluate these factors and set your business up for success by using the software that will work best with your business.

Not sure which direction to go, or need any further advice about what you need in a bookkeeper and your software? Schedule a discovery call today!

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