As your business starts to grow, two things happen: 1) You have more demands on your time. 2) You need financial insight to prioritize that growth.
Professional bookkeeping can help you address both challenges.
Financial Data Provides the Key to Growth
From meeting with prospective clients to managing your team, your day is full. Are you using your precious time as wisely as you can? As a business owner myself, I know how difficult it is to keep up with everyday business tasks, let alone set aside time for strategic planning.
The trick is to manage your time investments by leveraging focused financial information to inform your decision making. A cutting-edge outsourced bookkeeping services provider can furnish the kind of detailed financial intelligence you'll need to drive your company in the direction you want it to go.
Set Up Your Chart of Accounts to Get the Data You Need
It's easy to get the information you need — if your bookkeeping system is set up to record it. For example, a business that offers multiple products or services will want to know not only its overall revenue, but also the revenue and gross profit by product or service. That additional information will help you make better-informed business decisions and fine-tune your approach.
When starting a business, it's often easiest for the business leader or office manager to enter the invoices and expenses into their tracking system, classifying each item to the appropriate category (revenue, cost of goods, office expense, etc.). This is manageable at a small scale, and consistently entering the financial data and reconciling accounts will give you visibility into total expenses and total revenue.
So far, so good. However, as your business expands, there could be significant value in understanding the profit and loss for each service type. To achieve that understanding, the chart of accounts needs to be structured properly. And that, understandably, is beyond the abilities of the typical business owner or office manager.
In order to create reports that include next-level detail, revenue and expenses need to be categorized appropriately at the time of entry. Software is available that can accommodate real-time entries by using classes or locations and allocating the expense and revenue to the correct "bucket." The owner can then see margin by service type.
Business owners are often surprised to find that one service type is more profitable than another. Armed with this information, you can organize a growth strategy that aligns with this data.
Build Your Business With a Bookkeeping Services Partner
Here's the conundrum: Many business owners never discover that this type of detailed financial intelligence is available because they're buried too deep in the details of day-to-day operations.
A professional bookkeeping services company not only takes the transactional chores off your plate, but also brings the skills and outside perspective to offer guidance on everything from how to set up your chart of accounts to how to set up efficient systems. They also provide built-in controls to guard against costly errors or fraud while also helping to streamline the tax preparation process.
An outsourced bookkeeping services provider can partner with you to generate a wealth of insight into your company's financial picture, so you know where to focus your efforts to continue to grow your business.