You read it right – bookkeeping is like therapy for your business and your bookkeeper could very well be the best “therapist” you’ll ever have!
Let’s face it – being a business owner is stressful. Decisions, responsibilities and challenges flow faster than your cash at certain times throughout the year. And you have to meet them head on as they come at you – ignoring them does not make them go away – it makes them bigger.
Furthermore, the decisions you make and the actions you take can affect your business for months – even years – to come. Knowing this not only makes your choices more important – it also makes them more burdensome.
A great bookkeeper can help lessen this burden.
Bookkeeping is often overlooked as a business tool. But astute business owners who value professional bookkeeping prioritize it as their primary go-to source for historical data and forecasting – the two most critical assets for accurate business decision-making (i.e. mistake prevention and stress-reduction).
Here are 3 stress reducing competitive advantages a great bookkeeper will bring to your business.
Cash Flow Management
About 50% of new small businesses fail in the first 5 years. In almost all of those businesses, poor cash flow is the culprit. While the reasons vary, the simple fact is that the businesses that fail don’t have enough revenue coming in to cover the expenses.
Since cash flow problems sink most businesses, it makes sense that it’s something you should keep an eye on, develop an instinct for, and monitor regularly.
It’s common in many industries for sales to be inconsistent throughout the year. If you’re a builder, a landscaper, a snow removal company, etc. you’ll find that your business is cyclical with the seasons. That can make planning incredibly difficult, especially here in Michigan with 4 distinct seasons throughout the year.
A great bookkeeper will help you forecast and plan for the low to non-income producing months help you to manage your cash so you have some available during the lean times. Cash is king! And the cash flow in your business is a major indicator of your business’ overall financial health.
Data-based Decision-making
How do you make decisions for your business? In an ideal world, it should be based on the hard data that you can gather from your books. You take all the relevant data and analyze where you stand now, and how each decision you make will affect your business.
Far too many entrepreneurs base their decisions on gut-instinct alone. I’m a believer in intuition and do think that it should play a role in your decisions but it should also be supported by data and analysis.
For example, if you’re trying to decide if you should hire a business coach, your bookkeeper can provide the information about your current profit margins and projected expenses. This data will give you a much better view regarding whether you can afford the coach and how it might impact your business in the short and long term.
If you often find yourself in decision paralysis, unsure of how you should proceed or the next best step to take for your business, then a great bookkeeper can help you to be more decisive.
Stability and Confidence
Money is the number #1 concern for most Americans. Nobody likes to worry about money, but many don’t know how to get a handle on their finances.
Becoming an entrepreneur doesn’t change this. In fact, it generally increases the amount of stress around money because once you own a business you’re now worried about your business’ revenue as well as your personal income.
A professional bookkeeper can greatly reduce this stress. Knowing that you have an “ally”, someone who will keep an eye on your finances and alert you to any small issues before they become big problems, has a very calming effect, enabling you to operate your business with a heightened sense of security and confidence.
One of my favorite motivational quotes is this:
“What would you do if you knew you could not fail?”
Basically, this question is asking what would you do if money weren’t an issue? It’s a fun question for most people because, for most people, money is always the issue.
When money is a concern, it’s all-consuming. It’s on your mind all the time. The worry and stress effects every decision and action you take and diminishes your once promising vision for your future. But that doesn’t have to be your experience.
Bottom Line:
Alleviating financial stress is not a “secret” reserved exclusively for the wealthy. It’s a business advantage and strategy that every business owner – regardless of industry or size – can access and apply. And you’re only a bookkeeper away from reaping the benefits.
Still Waters Bookkeeping operates on the premise that a great bookkeeper is your business’ partner, adviser, and advocate. Dedicated to showing you your current overall financial picture, Still Waters Bookkeeping will help guide you along the pathway to your future financial picture – one stress-free financial decision at a time.
Why not take the first step today by starting a conversation?