So who’s excited to talk about bookkeeping? (cue crickets)
That’s right….no one is excited. Except me, of course, and perhaps other bookkeepers!
The dreaded drudgery of data entry and the meticulous sorting of paper prevents many small business owners from addressing the backbone of their own companies.
Every aspect of a business operation affects administration (#bookkeeping) because the administration is what informs the business owner of the health of the business. #smallbusiness Share on X
Small business owners are usually responsible for filling multiple roles within their companies. The majority of these small business owners usually begin their businesses with a passion or interest that is NOT bookkeeping. All too often, this means that the paper gets pushed aside while their passion is fueling them towards developing their products or services.
This is understandable because paper and numbers and bank statements aren’t aggressive. They don’t ring your phone, ding your email or knock at your door. They are quiet and content to gather, in piles around your office, in your car, in your purse, wherever.
But that’s okay. You have time to deal with it later, right?
WRONG! This is how vendors don’t get paid, clients don’t get invoiced, and CRA or IRS doesn’t receive the obligatory filings on time. All of this adds up to poor cash flow, penalty and interest charges, and added stress to the business owner.
Well it doesn’t need to be that way. There are a lot of options out there to ease the burden of bookkeeping and there is a specific combination of options that will work best for you.
Here are some considerations before committing to any option:
What is your comfort level with this option?
Don’t buy a subscription to an online platform if you are a paper and pencil kind of person. You may be recalling that gym membership that looked like a good idea in January but was demoted to the bottom of the proverbial ‘to do’ list by March.
What kind of access do you want?
If you work from home, make sure your work station (desktop, laptop, tablet) as well as your internet speed is sufficient to keep you from staring at that spinning rainbow circle or hour glass. Lag time drives me crazy! And if you are mobile working onsite at your client locations, then the same thing goes for your cell, too.
What does your accountant recommend?
All accountants are exactly the same and all accountants are completely different. It’s best to email a request for their recommendation. They will let you know what they like and don’t like as well as their reasons for each. Also, they may address the initial set up of your data file. This is where business owners have the potential to make some big mistakes. Accounting and its related softwares are essentially like 3D puzzles. Certain accounts link to other accounts and if set up incorrectly, can cause headaches. Do it right the first time.
What are your long term business goals?
This is important because if the option you chose doesn’t provide the flexibility you will need in the future, you may be forced to change options. This can be costly both in the time and billing of converting to a new software or in needing to access multiple softwares to generate historical reports. Remember, your platform needs to provide you with more than just your current transactions; its main purpose is to provide you with the necessary accurate information to assist you in making business decisions that will grow your company. If you have one year of info in Simply Accounting and one year in Quickbooks and one year in Freshbooks and one year in….well, you get the idea.
Conclusion
Finally, it doesn’t matter what options you choose or how great the tools are if you don’t actually use them! This may take some trial and error to determine the right fit. This is one reason why speaking with a qualified individual having a broad knowledge of applications can be so valuable. It will help narrow down your selection to invest your time and energy into what is most likely to be the right fit.
A word of caution: the bookkeeping industry is NOT regulated. This means that there is no agency with the responsibility and power to oversee the operation of people calling themselves bookkeepers. There are agencies for accountants, doctors, lawyers but not bookkeepers.
Feel free to access my website and read my article, “What should I look for in a good bookkeeper?” It will assist you in your search.
Happy hunting!
ABOUT THE AUTHOR
Carla Gate
Carla cites her own “unnatural sense of satisfaction with accounting details” as having sparked her passion for helping the “reconciliationally challenged”. She has dedicated herself to battling the boredom of bookkeeping as “Carla Gate -Your Numbers Girl”, a caring, conscientious confidante. She is an expert clients can trust to ensure their records wellness and advance their business success.
Her enterprise, Performance Bookkeeping Solutions Inc., specializes in workshops and one on one coaching designed to empower small business owners in easy, effective techniques to independently manage their monthly accounting without angst. You can find Carla online at http://pbks.ca/