How you manage your business’ financial records when you open your doors can come back to haunt you if you don’t think ahead. Plan for success by setting up systems that will scale as your business grows — including your bookkeeping system.
Slicing a Bigger Piece of the Pie
Here's what we're talking about in practical terms: Say you have a side business selling home-baked blueberry pies at a local farm stand. Before you know it, your pies are the talk of the town and you decide to turn that sideline into a full-time business. Obviously, you can't just keep picking blueberries in your backyard and baking pies one or two at a time in your kitchen to meet the demand. It’s time scale up to a full-size bakery.
Moving into your new space is exciting and business is growing. You’ve made a substantial investment in new equipment, infrastructure, employees and vendors, so you might be tempted to try to continue with farm-stand-level bookkeeping. However, half-baked bookkeeping could be just as harmful to your business as half-baked pies.