You’ve probably heard the saying, “Where attention goes, energy flows.” This quote, which I first heard from Michael Bernard Beckwith, perfectly describes the relationship between you and your finances. The more you pay attention to them, the more you will see growth and change. I’ve seen this happen with clients over and over.
This is especially the case with record-keeping. Regularly tending to an organized bookkeeping system for your business will have a positive impact on your bottom line. This is something you see the best results with if you stick with it long-term. It requires effort on the front end to set up a system that works for you. And, it’s absolutely worth it. Let’s talk about the how and the why of clear record-keeping.
How Do I Keep Clear Records?
First, separate your business finances from your personal finances. There are many excellent reasons to do this, and two different methods that I recommend to clients based on the size of their business. You can read all about that here.
Next, set up a system. You might think this just means finding some record-keeping software, but we’ll get to that in a minute. Your software is just one part of your larger money system. What you want to do at this stage is set up a money map to help you visualize where money goes in your business. You can read my full series on money mapping here.
Once you’ve visualized and established an overall flow of money in your business, get into the nitty gritty and set up your software. My top two recommendations for business tracking are MoneyGrit.(R) and QuickBooks Online. I wrote a longer post comparing softwares that you can read here to get more info about both.
Finally, I highly recommend consulting with a professional to review your system and make sure everything is set up properly. Reviewing your books with a bookkeeper a few times a year can also be beneficial. You can read my article on working with a bookkeeper to learn more.
Now that we’re clear on the how, let’s talk about why prioritizing clear record-keeping can benefit your business.
Analyze Your Data
Your financial record-keeping is a data source in your business. By having clear records, you can start to trace the revenue trends in your business. You can use this data to analyze what offerings are the most profitable, and what expenses bring you the best returns. If you want to know more about this, read my article on how to focus your offerings to create more revenue.
Reduce Stress at Tax Time
Besides offering you key insights that can help you create a more profitable business, clear record-keeping also makes all your necessary tax-time info readily available. This can be a time- and money-saver, because you don’t have to hire someone else to untangle your mess at the last minute. Besides those obvious savings, the value of reducing your stress is also not to be underestimated!
If you appreciated learning about clear-record keeping and want to take the next step in setting up your system, you might consider working with me to do a Quickbooks training. I love working with solopreneurs to make sure they are set up for success. Schedule a free Financial Self Care Consultation here!
Angela
