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Make Decisions With Bookkeeping | Supporting Strategies

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How Professional Bookkeeping Helps You Make Better Business Decisions

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Learn how outsourced bookkeeping and controller services can provide the financial insights you need to define and execute your company's strategy.

Many successful business leaders are not "numbers" people. That might seem like a disadvantage, since the numbers — i.e., revenue and expenses — determine the profitability at any business. But here's what those successful business leaders have figured out: A qualified bookkeeper can read and interpret those numbers so the business leader doesn't have to. That, in turn, frees up the business leader to focus on leading the business.

And the better those "numbers readers" are at telling the underlying story, the better the business leader will be at making key decisions that align with strategy.

Success Is Baked In
Think of it this way: Building a successful business is a lot like baking a cake. If you acquire the right ingredients, combine them in the right proportions in the right order and bake them for just the right amount of time, the results are sweet. But if something is a little off somewhere along the line, the results could fall short and you wouldn't know why. Maybe it was something as simple as not waiting for the oven to get up to temperature before putting the cake in.

The good news? Once somebody points this out, it's an easy fix. Next time around, you preheat the oven to the proper temperature while you're mixing the batter. Problem solved!

A professional bookkeeping service can be the "somebody" that points out similar miscalculations at your business. They'll start by setting up your chart of accounts so transactions are correctly recorded and categorized.

Success Is Also Categorical
Consider expenses that aren't categorized correctly. Let's say your marketing expenses get lumped in with your administrative expenses. Well, who cares, as long as they're accounted for, right?

The problem is, those incorrectly categorized marketing expenses could inadvertently lead you to throw good money after bad. If you're not getting the number of leads you expect, you might choose to spend more on marketing — especially if your records seem to indicate you've spent far less on marketing in the last year than you actually have. So you might double down and spend even more on the same ineffective marketing strategy.

A better approach would be to properly allocate the marketing budget and use it to test different strategies. Once you've figured out a strategy that produces the desired results, then you can increase the budget. Or you might find an approach that doubles your results for the same budget.

Having expenses properly categorized allows your professional bookkeeper to analyze variances period over period and provide insight into business results which will ultimately help you make informed decisions.

End of Story
The story of your success is written in your numbers. All you need is someone who can read them correctly and provide a solid bookkeeping foundation for you to make sound business decisions.

At Supporting Strategies, our experienced, U.S.-based professionals use secure, best-of-breed technology and a proven process to provide a full suite of bookkeeping and controller services. Are you ready to learn how you can move your business forward? Contact Supporting Strategies today.

Pamela Zygmunt

Author:

Pamela Zygmunt

Pamela Zygmunt, Managing Director, Supporting Strategies | Irvine, CA, provides bookkeeping and controller services that help Irvine-area businesses make informed decisions.

Legal and Tax Disclaimer

This website is created by Supporting Strategies to provide general bookkeeping and accounting information only. Supporting Strategies does not provide tax, legal or accounting advice, and the information contained herein is not intended to do so. As such, the information provided should not be used as a substitute for consultation with professional tax, legal, and accounting advisors, and you should consult with a tax, legal and accounting professional before engaging in any transaction.