What Can Your Books Tell You?
By: Rachel Raupp
The act of keeping your books up-to-date can be a time-consuming and tedious task, but the hard part is reading what your books are telling you. If you look at your numbers and that’s all you see, it’s time to talk with a bookkeeper. Bookkeepers are like cartographers: not only will they map out your books, but they’ll tell you where all the mountains and valleys are.
In simple terms, your books will tell you how your business is doing - really well, very poorly, or stagnation. And, better yet, your numbers will tell you WHY. Bookkeepers can find patterns in your financial reports, red flags that could pose an issue in the future, and opportunities you may want to jump on.
What are you spending money on that is unnecessary and could be used somewhere else? Reference your books. Has your company had an increase or decrease in profit? Reference your books. Did you really underpay your employee? Reference your books. How does this quarter compare to this time last year? Reference your books!
For example, if your company purchases boxes to use as a packaging supply and you notice your costs have increased over the past six months, it may be time to look into different vendors with competitive pricing to save money. Your books can tell you this.
Your company’s most important resource is your books! It contains every little detail. Take advantage of this tool, and if you’re unsure how, contact us. We’d love to help you understand your books and all they’re telling you. Why not be on the same page as your books if you have the chance?!