Why You Need Keep Up With Your Bookkeeping During Hard Times
It’s more important now than ever to maintain accurate and up-to-date books for your business, whatever it may be. With the state of the economy and everyone adjusting to WFH or not working at all, it can be easy for something like bookkeeping to slip through the cracks. However, neglecting your books during a volatile economy is a sure way to lose sight of where your business is headed and how it’s holding up. To keep it simple: a good business keeps good records.
Having the ability to pull a report at any time is one benefit to having updated books. You can evaluate the finances of your business at any given point to help make important company decisions. Do you need to cut your budget? Run a report to look at the exact numbers of your business in each area - where can you cut expenses? Are there any underperforming products or services? Or maybe you just want to know if you’ll be able to pay your upcoming bills with your current cash flow. You will not receive accurate numbers on these reports if you do not keep your bookkeeping updated at all times.
You should be analyzing and comparing reports on a regular basis.
Why should you care? Plain and simple - it’s your business and you should. Your finances are not a game nor should they be an afterthought. If you personally don’t do the bookkeeping and accounting for your company, make sure you’re in touch regularly with whoever does, whether it’s an outsourced company or employee. Make it a habit to send in new receipts, invoices, and other necessary documents on a regular basis so you aren’t the reason you books aren’t in shape.
Not only do your books need stability to be the backbone of your business, but your information also needs to be kept safe. While people are working from home, they’re using new programs or software to make their jobs easy to do from home. If you’re looking to save money, avoid cutting the budget for your software - typically the ones with better security are more money. When saving and using personal and confidential information, use the best software. We use QuickBooks, which is one of the best accounting softwares for many reasons, including the security features.
We stress the importance of your bookkeeping on any normal day, but now that we adjust to the new normal and the volatile economy, your books could be the glue that holds your business together.