“I know everything there is to know about baseball cards and sports memorabilia,” Hans said, “But when you ask me about my expenses and revenues, I’m in way over my head. I have a bookkeeper handle all of that for me.”
Many hard-working small business owners in Westchester County have no problem devoting hours to making their enterprises thrive, but they get cold feet when it comes time to do the bookkeeping. Many people are intimidated by the math involved. In some cases, the fear of making a mistake is so strong that they don’t even try.
However, not knowing the fundamental numbers of the business is the biggest mistake a Westchester small business owner could make. If you don’t know how much money you’re making, you don’t know how much you can afford to spend on inventory or payroll, for example. It’s also very difficult to protect yourself from being cheated by a business partner or employee if you don’t understand how much money should be in your accounts at any given point.
You don’t have to be a math wizard to get the basics of bookkeeping down pat. Today’s software programs make business bookkeeping much simpler than ever before. One of the best investments you can make in your business is taking the time to learn these programs well enough to understand how well your business is doing financially. You can still have a bookkeeper handle the job for you if bookkeeping is not something you enjoy or feel comfortable doing.
The important point is that you understand how much money your business is making, how much you’re spending, and whether or not you’re profitable. When you understand these things, you’ll make better decisions, which will help your business thrive.
SCORE Westchester small business mentors offer several free educational classes and workshops for small business owners. You can even take these classes before you open your business so you’re fully prepared to be successful.
On July 10th, for example, you can attend “Quickbooks for Advanced Beginners”. This class will prepare you to make the most out of one of the most popular bookkeeping programs available today. Space is limited, so you’ll want to register now.