Why is your bookkeeping important? ~An Overview

Why is your bookkeeping important? Imagine this:  there is a picture of your business. It is framed by your financial statements--your income statement, balance sheet, statement of cash flows, and statement of owner's equity make up the four sides of the frame. The frame supports the picture, keeping it from falling off of the wall.

The financial reporting is important because it tells you where your revenue is coming from, and where it is going. Without this information, you as the business owner have no way of influencing these two aspects of your business.

Without a true picture of your financial status, decision-making is possible, but cannot maximize your revenues or manage you expenses to become more profitable. And profitability is what everyone is in business for, right?

So what happens if your bookkeeping is done incorrectly? You can still make decisions, but you may be making the wrong decisions. I recently worked with a company whose labor percentage was consistently showing higher than the budget. Because of this information, the manager made cuts to his labor force. However, the labor percentage was still high, and so more cuts were ordered. This manager had cut his labor force to the point that he did not have enough employees to keep up with the necessary work, and his remaining employees were working themselves into burnout.

Upon reviewing his information, we found that his previous bookkeeper was figuring his labor percentage incorrectly. After all the cuts to his labor force, his REAL labor percentage was much lower than his budget. Because we were able to determine this, he was able to hire more employees to do the necessary work. This offered his company many benefits, including the work being done in a timely fashion, and morale was returned to his employees.

What does your business's picture look like? Is it being sketched by a professional artist doing an exact representation of your business, much like Andy Warhol's "Campbell's Soup" paintings, or is it more like Van Gogh's "Starry Night"?

Vincent van Gogh

Andy Warhol

I welcome your questions and comments? Contact me at Traci@BassProfessionalConsultingLLC.com or (478) 951-9298. You can also get a no-obligation assessment of your needs and initial quote to meet your business needs..

Questions and Solutions

As a professional bookkeeper, I have a few questions for you as a business owner to consider. How do you feel spending valuable time on bookkeeping tasks? Do you resent those tasks because you would rather spend time with your family, building your business, playing golf, or just relaxing?

Consider this:  If your time is worth $50 per hour (based on those tasks that profit your business), and you spend 10 to 12 hours per month on bookkeeping tasks, then your bookkeeping is costing you on the low end $500-$600 per month. If you need to spend those same hours working your business to keep it profitable, it is costing you much more on the high end.

Now you are thinking, "I can't afford to hire another employee to do this." You are absolutely right. An employee equals more salary, more payroll taxes, more inner-office drama. Not to mention that an employee is going to stretch these 10 to 12 hours of work into a full 40 hour job.

Now consider outsourcing your bookkeeping tasks. Consider how it would feel to not have those hours of work looming overhead...to not worry about whether or not your employee is going to show up for work...to not have to worry about the quality of the information you are getting...

Is this a dream? No, not at all. This is Bass Professional Consulting, LLC.

What questions or concerns do you have for me? Contact me at TraciBass@gmail.com or (478) 951-9298 for a no-obligation assessment of your needs and initial quote to meet those needs.

Introducing Bass Professional Consulting, LLC

We can help you cut your overhead AND get the quality you desire to run your business! We are a dedicated professional bookkeeping service, not another temp agency!

Local Certified Public Bookkeeper with over 15 years of experience in Accounts Payable, Accounts Receivable, Payroll and Payroll Taxes, General Ledger, Bank Reconciliations, and Financial and Management Reports. Available to assist you with these tasks and more. Allow me to serve you by getting your books in order and keeping them in order, while providing you with the important information to help you focus on running your business and maximizing your profit.

Contact Traci Bass, MBA, CPB by phone at (478) 951-9298 or by email at TraciBass@gmail.com. See my profile at http://www.linkedin.com/in/tracisbass and our website at ww.BassProfessionalConsultingLLC.com.

Specializing in

      ·         Accounts Payable

      ·         Accounts Receivable

      ·         Payroll, including payroll taxes

      ·         General Ledger

      ·         Bank Reconciliations

      ·         Financial Reports

      ·         Management Reports

      ·         Consulting