Is bookkeeping really that important? The short answer: Yes!
The long answer? Well, you’ll just have to read this recap of the One Next Step podcast episode in which I sat down with Amy Appleton, BELAY’s Director of Marketing, sits down to talk with Jen Barden, BELAY’s Director of Finance.
They’ll share specifics on what business owners should tackle first when approaching new processes or utilizing people to help them with their finances. You’ll learn the importance of having a bookkeeper on your team who is knowledgeable, proactive, reliable, and capable of keeping you informed of your financial records.
Here are some of the main points from the episode:
Communication is key.
When it comes to bookkeeping, you have to stay on top of communicating with the people who handle your finances. Touch base weekly and also make sure you are getting feedback on your financial reports every month.
Getting all of your financials into an accounting software is critical. After that, you need to set up your bank accounts and get set up with a bookkeeper. The main reports you should be looking for to review are balance sheets, income statement or profit and loss statement, agings, and statement of cash flows.
A bookkeeper will run these reports for you, so that you can start focusing on what the numbers really are rather than getting all of the transactions recorded.
Ask questions of your bookkeeper.
You can’t set it and forget it just because the bills are getting paid or you’re making a paycheck. You have someone helping you with the finances, but you also have to stay involved and know what’s going on.
A bookkeeper partners with you in your business. Use those reports to make decisions and assess the overall trajectory of your company. Build bandwidth into each of your schedules to reach out and ask these questions.
Having your finances in order will take a huge burden off your shoulders when a crisis hits.
Think back to the pandemic of 2020, when so many businesses were applying for PPP loans. With everything already prepared, that’s a painless process.
But if you’re doing everything on your own or not really keeping up, then that process will become a nightmare. Having a dedicated bookkeeper allows you to do what you do best without worrying about what might happen when a financial emergency pops up.