How Bookkeeping Can Help You Grow Your Business!
One of the questions I ask small business owners during the consultation phase is, “What are your goals for your business?”
Almost always the answer is, “I want to grow my business.”
Growing your business can mean a number of different things, including:
Providing a new product/service to your clients
Hiring new employees
Purchasing more inventory
Outsourcing tasks
Obtaining an office space
This list can go on and on. But, we must consider a very important factor which will help you accomplish these goals!
This is (yup, you guessed right!) the green machine - MONEY!
Does your small business have enough capital to accomplish your goal of growing your business?
Maybe your answer is yes, but for many small business owners, the answer is NO!
Most small business owners are lucky to break even for months, even years, before the business becomes profitable. But, I am here to tell you, it is totally OK. Money should not be an obstacle that stops you from growing your business. You must be thinking, “This bookkeeper is nuts, how can I buy more inventory with no money?”
The answer is: LEVERAGE! Use other people’s money!
Many investors and banks are willing to lend small business owners money to grow their businesses with the hopes of gaining an excellent return on their investment.
But…(you knew there was a BUT coming right?)
You, and yes I mean you, the small business owner must have excellent financial records. Investors will ALWAYS, and I mean ALWAYS (unless you’re dealing with your mother) ask you to provide at least 2 years of P&L statements and Balance Sheets.
A savvy investor wants to know that you are keeping track of your business’s financial health. As a small business owner, next to providing more value to your customers, this should be your #1 concern.
How can small business owners maintain excellent financial records for long term growth and success?
Answer: Utilize a cloud-based accounting software
Here are a few that I recommend:
Quick books Online: This cloud based accounting software allows you to track income, expenses, connect your bank account and add multiple users. It is especially popular for professional service providers.
Xero: This cloud based accounting software allows you to process payroll, view valuable reports and access your business financials from anywhere.
Action Step: Start using a cloud-based accounting software now!
If you are interested in receiving more actionable content to help you BUILD WEALTH, hit me up!
Your virtual bookkeeper,
Alex
