3 ways Good Bookkeeping can Boost your Profits
Updated: Jan 25, 2021
Lately, I’ve been thinking a lot about road trips. The freedom of heading out of town, the excitement of reaching a new destination, and the thrill of what could be found along the way calls my name, especially as the pandemic drags on. Though, the spontaneity of a good road trip always comes with hours of behind the scenes planning. Opening and managing a small business can feel the same.
Owning a business gives you freedom beyond the 9-5, with seemingly endless opportunities and daily excitement. But, having a plan and checking your roadmap consistently can help you avoid any potential dead ends. With good bookkeeping, you can stay fueled up with consistent cash flow, plan your adventures with key insights, and better understand how your business is making - and losing - money on a regular basis. The result? Better profits for your business!
Here are three ways good bookkeeping can boost your profits immediately:
1. Improve Cash Flow
How can you continue a road trip if your car is out of gas? Keeping cash flow steady is one of the most important parts of running your own business. Even some of the best small businesses fail simply because they burned through cash faster than the cash could fill up the tank. Hiring a bookkeeper - and using your cash flow statement to inform your decisions -can keep your business fueled up, on the road, and moving forward! Could you use help understanding your cash flow statement? Fireside Bookkeeping offers clients a unique and streamlined report that covers the cash flow statement in a way that’s easy to understand.
2. Optimize Decisions for Business Growth
When it comes to road tripping, planning your stops can save you loads of time and money. The insights you get from your bookkeeper can do the same. Leveraging your financial statements, your bookkeeper can help you determine whether or not you’re ready to hire new employees, if you should move forward with planned upgrades, and so much more. Running a small business can be a roller coaster, but with good bookkeeping, you can mitigate any drops along the way and plan wisely for the future.
3. Understand Profit and Loss
Imagine you hit the road with a set budget but you didn’t track your spending for the first three days. You might end up having a lot less fun on the last leg of your trip - or worse, being forced to end the trip early. Good bookkeeping can give you insights into how you’re spending your money, what business expenses are producing a return on investment, and where your money is coming from. There is power in understanding your profit and loss statement! By identifying the most profitable parts of your business and analyzing your business expenses, your business will become more profitable over time.
Is your business ready for the long haul? We can hop in the passenger seat to help you clean up your bookkeeping, analyze your financial data, and forecast your future to make your business journey more profitable and successful!
Ready to use bookkeeping to boost your profits? We’re here to help you plan your roadmap and keep you on track.
or Schedule a free Discovery Call here: https://bookus.page/Fireside/judahkosky/discovery-call