Did you know July is National Ice Cream month? Have your kids required an ice cream stop when you finish at your favorite swimming destination? Keeping kids happy can be a challenge, but sometimes ice cream helps. (Or it at least keeps the van quiet for 10 minutes.) I recently saw a Ben & Jerry’s bumper sticker with their tagline “If it’s not fun, why do it?” and had to weigh in on the subject. Ice cream is one reason for screaming – frustration over bookkeeping is another. Completely different emotions between the two, but the same result!
Here are 5 quick reasons why doing the “not fun” work of bookkeeping is important:
1. To protect yourself in case of an audit. The TN Department of Revenue often performs audits within the first five years of business. You want to be in compliance instead of paying any fines or fees for not fully understanding what was taxable and was was not.
2. To understand the details in your monthly reports. Which reports do you need to make business decisions? At a minimum, we recommend to do a Balance Sheet, Profit and Loss, Statement of Cash Flow, and Job Costing.
3. To analyze your current financial situation and plan for the future. Schedule time to periodically make sure you’re on track for the year by comparing where you are at with where you want to be at the end of the year. Did you make Forecast?
4. To determine whether it’s more cost-effective to do your own books or to outsource it. Being hands-on and increasing your skills can be satisfying. But if your strengths lie elsewhere, hiring a bookkeeper can be an efficient use of your money.
5. To provide a source of income for your next generation. Lay out a strategy to clearly define roles and responsibilities as hats change and your business matures. Learn more here about transitional challenges.
And if you need more reasons to love ice cream and hate bookkeeping just ask us! Or better yet - come by for an ice cream sandwich and scream about your books to us!
By the way, if you’ve “had it up to here” with your financial books and are still screaming for ice cream, we recommend a break! Check out these local vendors for a sweet treat: Clumpies Ice Cream Co., Milk & Honey, The Ice Cream Show.
Lynn Talbott, MBA, PHR, received the TSBDC’s 2015 Small Business Person of the Year Award for Chattanooga and was recognized as a 2015 Rising Star. She is the Founder and President of HR Business Solutions, LLC. Lynn was previously a Corporate Trainer and HR Manager for a Fortune 500 company in Seattle, WA. She has 20+ years’ experience advising entrepreneurs of small- to mid-sized businesses in HR and Office Management. She is a Certified QuickBooks ProAdvisor and is Xero-Certified.