27 Feb From Shoebox to Success: How to Update Your Business Financial Records
When was the last time you updated the financial records for your business? If that question set off alarm bells in your head, don’t panic. We’re here to help you update your business financial records and go from shoebox to success.
The importance of current financial records.
You regularly make big decisions about product lines, pricing, inventory, services, and much more as a business owner. But without accurate, updated financial records, the financial impact of any of these decisions is just a guess. On that note, if you get to the point of bringing in investors or needing a loan, accurate books are a must for that too.
Think of your financial records as a dashboard for your business. You should be able to access them quickly and easily to help you navigate your next steps.
Understandably, not everyone has the know-how or the time to spend on their books. That’s where we come in. We can handle the bookkeeping and financial records for your business. But we also want our clients to feel empowered and help business owners understand their financials and grow the businesses they love.
Tips for updating financial records.
That’s why, today, we’re sharing some of our favorite tips for updating the financial records for your business.
Make a date.
First, it’s important to set up a designated time devoted to bookkeeping and accounting if you plan on doing it yourself.
Sit down at the same time each week to look at your income and expenses, as well as accounts receivable and payable. If your old practice was to “just do it when you got around to it,” you probably realized pretty quickly it was a task that was always pushed back because something else took priority. But if you determine that, for example, every Monday from 4-5 p.m. you sit down and look at your financial records, you’re more likely to actually follow through.
Organize, organize, organize.
We can’t even begin to express the importance of keeping your financial documents organized.
There’s a variety of records you need to keep, including:
- Invoices and receipts for sales or services provided by your business;
- Invoices for goods, services, and other business purchases for your business;
- Bank account statements;
- Credit card statements;
- Business tax return documents;
- All financial statements, including balance sheets and profit and loss statements;
- Records of payments made to employees as well as payroll source deductions submitted on behalf of employees.
The length of time you’re required to keep business records will depend on a few factors as outlined by the IRS that you can read about here.
Having all of these records organized in a manner that allows you to access them quickly and easily will save you a major headache down the road when you’re asked to provide certain documents.
Between the day-to-day operations of your business as well as your personal responsibilities, bookkeeping of financial records for your business could be the last thing you want to do. If you’re struggling to make time for bookkeeping or you just plain need help with it, it’s time to outsource your bookkeeping.
With your bookkeeping outsourced to professionals, you’ll get the peace of mind of knowing your financial records are taken care of. You’ll also get back valuable time you would have spent doing it yourself. Not to mention, you can use your bookkeeper as a source of information to learn about your business. They can help you understand the basics of bookkeeping, all the way to the more complicated and intricate sides of the process.
We like to think of investing in a bookkeeper as buying a roadmap to your business’s success. Here’s why.
If you’re hesitant to outsource your bookkeeping, keep this in mind: there’s also a cost to doing your bookkeeping in house. Not to mention, you may have been delegating this job to an employee whose skills are better used elsewhere.
Contact us today.
Ready to take back control of your financial records and get a clear picture of where your business stands? Call us today.
Our services are designed to remove the burden of bookkeeping from those who already have too much on their plate. Sound familiar? By allowing us to handle the more complicated aspects of your financials, you can focus on running the show.
For more information about how you and your business can benefit from using Two Roads, please contact us at 865-212-0063.
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