WomenTIES Newsletter

Accounting: It’s Not Just a Big Business Practice

When most business owners decide to start a business, they know that they want to start making, selling, or producing their product or service but overlook one very important and essential thing……their bookkeeping. There are a few things that I have noticed since having started my own business. The vast majority of small businesses have no financial system in place, small business owners have a lack of understanding of proper bookkeeping and a lack of time, and small business owners try to handle all aspects of their business.

From having started my own business, I have noticed that most of the small business owners that I deal with do not seem to be concerned about their bookkeeping until it starts to become a problem or it is nearing tax time. They can be disorganized or need some more funds for their business. Most noticeably most small businesses do not seem to have an accounting system in place. My advice to all small business owners out there is for bookkeeping/accounting to be one of your top priorities before you even start your business.

I once heard that the two important things to get when you go into business are to get a good lawyer and a good accountant. I am not only writing this article because accounting/bookkeeping is what I do, but I hate to see small businesses get into financial trouble. My suggestion to small business owners would be to get a bookkeeper/accountant to set you up on a bookkeeping system right from the start of the business. Either have them train you or someone else in your company to do it or even hire them to come in once a week, once a month, etc. to do it. I cannot count the number of times I have heard my clients say that they are glad they have me to handle their bookkeeping/accounting issues because they just do not have the time.

Another thing I have noticed is that small business owners try to do it all. I have one client who runs the business, is his own secretary, and is his own bookkeeper. He finally realized that he was becoming so busy that it was time for him to get some help with his accounting. Small business owners are afraid to give up any control of their business, because it is something so near and dear to their heart and they are afraid they cannot afford it. I completely understand that being a small business owner myself. I also have a lawyer friend who was a little afraid to get any help with doing small things for her like writing letters to clients, filing, etc. (non-billable stuff). I got her to realize that just having that one person to help her out helped her tremendously and made her able to spend more time on billable items and not non-billable items. I also learned this from the lecture that Women TIES had a few months ago at Craftsman Inn about adding just one employee to your staff.

So in summary, I believe now is the time to start thinking about your bookkeeping/accounting needs. It is not too late. It is my belief that regardless of how small a business may be proper bookkeeping and financial reporting is absolutely essential for a healthy and prosperous future. Get a bookkeeping system in place from the start of a business, hire someone either internally or externally to handle your bookkeeping for you because there are is only so much time in a day, and do not try to handle all aspects of your business. Enjoy the fact that you have your own business and the freedom it gives you. If you have any bookkeeping/accounting questions, please do not hesitate to call me: Janet Reistrom, JR Financial Solutions @ 727-6067.