The 3 biggest risks of not cleaning up your bookkeeping
Updated: Sep 4, 2019
Knowing your numbers isn’t a once a year thing. There’s value there that extends far beyond tax season. Your numbers have a value for all seasons. While we’re at it, they have value every.single.day.
Let that sink in for a moment.
Each day, your numbers can tell you something critical about your business. Numbers give you insight and in-depth knowledge so that you can make the right decisions today, and the next day, and the next.
If you’re 100% done with shooting in the dark—making decisions based only on what you feel is right—then let’s take a giant leap forward and start making the right changes today.
So, you’ve spent the entire year getting by, making money, and feeling pretty good. The year is ending, and people are talking about it… tax time. They’re ready for it, and it’s no sweat.
Suddenly, you feel a wave of panic rushing through your body. You think to yourself, “Wait. I’ve done well this year. I mean, I’ve made consistent sales, and I’ve paid myself enough.” (I hope you’re paying yourself. If not, let’s fix that now.) “But, I have no idea what I’m going to owe in taxes. Exactly how much has my business brought in this year anyway?”
We know numbers in and out. I mean, we eat them for breakfast along with a sweet stack of tech tools and a giant bowl of piping hot accounting workflows. In short, we know this stuff.
We know that your business has value. You have value. Staying 100% committed, means that you choose not to ignore what your numbers are trying to tell you.
Nurture your business so that it has the space it needs to grow.
So we’re mid-way into the year, and it hits you — BOOKKEEPING! Congratulations, you’ve just taken an essential first step… you’ve acknowledged your numbers.
The second step is to get them to a place where they’re telling you the real story. Not taking action on this critical second step is very risky. Here’s why…
You have no idea where you’ve been, where you are, and where you’re going - You feel lost. When you get your numbers up to date, you’re building a financial history… you’re unfolding a unique story. You know exactly where you stand right now, and can strategically see where things are going based on where you’ve been and where you are.
You panic over filing your taxes again and again - Go back to the last time that happened — total panic mode over getting the taxes done right and on time. You’re up late at night or working through tax documents on weekends. It’s stealing time that you’re better off spending with friends and cold beers. With sound bookkeeping systems year-round, consider that situation obsolete. When you value accurate numbers on an ongoing basis, tax time is merely a blip on the radar. You’re confidently filing your return timely and correctly. No sweat off your back!
You feel alone - A business of any size takes an entire village. Whether you’re a Solopreneur or the CEO of a large corporation, your community includes clients, mentors, and experts to help you navigate the sometimes very treacherous waters. When you reach out for help, you’re not only getting technical support and expertise, but you’re calling on others who believe in you and are here for your success. You’ve got to build your village.
How do you get actual value from your numbers? You nurture the system those digits rely on — your bookkeeping system.
If the numbers aren’t telling you the real story, review them, and the system, then make changes so that it works at its absolute best for you.