You may not be familiar with bookkeeping at all.
Let me compare it to something I’m sure you are familiar with.
How do you plan a road trip?
Let’s say that you decide to go on a road trip that includes overnight stays. You’ll have to plan how long it will take to get from point A to point B. You will need to book hotels, plan your stops, bring appropriate clothing, and, of course, plan how much money you will need.
What happens if you don’t fill up the car with gas before you leave? You most likely won’t get as far as you thought on day 1, but you can still keep going.
What happens if you don’t put enough money aside for gas?
Now, you may have to shorten your trip or worse, come back without reaching your destination!
Well, not doing your bookkeeping every month, is the same as going on a trip with not enough gas in the car. When you finally sit down to do your bookkeeping, you may have spent a lot more than you had thought and your money may not...
I just started my new business, I don't have a lot of transactions. Should I start my bookkeeping now?
It is best to start as soon as possible. The biggest reason small business owners don’t do their bookkeeping is because they don’t know where to start and the invoices and receipts have pilled up and the more they wait the more it becomes difficult to start.
Starting right away will get you used to doing it and it will become second nature. But the biggest advantage of doing it right away and regularly is that you will always have a clear picture of how much money you made and how much you spent.
Industry Canada stated “The #1 reason Canadian small businesses fail is because of inexperienced management.”
Part of that inexperience is not staying on top of moneys in and moneys out.
Bookkeeping for small business owners doesn’t have to be complicated.
You might be telling yourself that you are not sure you can do it, but if you already either own your own business or decided to start one, you definitely CAN DO THIS!
You don’t need any bookkeeping or accounting background.
The key is to keep it simple.
Find out if your bookkeeping habits are helping or hurting your business.
Time to catch up and put that backlog behind you!
Your only regret will be: "Had I known it would be this simple to catch up, I would have done it a lot sooner!"
And then...what a feeling of accomplishment!!
By Sylvie Poitras
Being your own boss and having your own business is very rewarding and the numbers are growing every year. Statistics Canada reported that in 2018 “2.9 million Canadians were self-employed.”
Whether you do a search on “Entrepreneur’s biggest challenges,” “Small business challenges,” “What do entrepreneurs need”… you will find a ton of articles with very similar results.
Two of the most common challenges are time management and cash flow management.
When time is limited, the first thing that gets ignored is what you like the least. Since a great deal of small business owners are “creative” people, the part that gets ignored is the paperwork.
It doesn’t have to be complicated!
Not knowing what your business cash flow is on a monthly basis is like going on a road trip across Canada and not filling up the gas tank before you leave. You’ll get going for sure, but you’ll most...