Why Bother?
Posted on March 28, 2022

The secret to a profitable business?  Knowing your numbers!  This means- you’ve got to have your books in order.

Yes…I said it.  Having organized books are only part of the equation BUT I’ve never worked with a profitable business that is disorganized with their bookkeeping.  “Messy books = messy business” as I always say.

I’m sure you’re excited to review your Q1 reports soon bu….t QBO needs to be up to date if those reports are going to be accurate.

Let’s start with the basics.  When I say, “Up to date” what does that mean?  

It means:

-All transactions are entered in all bank/credit card/loan accounts.

-All reconcilable accounts are reconciled (ex. bank/credit cards/loans/LOC).

-Look through accounts and clear up any unreconciled transactions- you may need to do some digging to see if they’re truly unreconciled OR they’re just duplicates of a reconciled item.

-Look through the undeposited funds account- make sure everything that comes in will come out or at least come out sometime soon.

-Did you have any new subcontractors?  Get a signed W-9 from them (you can send them a form directly from inside QBO).

-Run a P&L report by vendor.  Make sure you have vendors on all your transactions (I make exceptions for interest expense and transactions within journal entries).

These are just the basics!  When I review monthly reports there are additional items that I make sure happen but wanted to give you some big picture things right here.

Keeping your books updated helps you more than just reviewing reports!  It’s important for budgeting, keeping accurate records for taxes, meeting government regulations, knowing what money you owe and who owes you, and gives you peace of mind.

Are you looking at your books on a weekly basis, at a minimum?

Set up your weekly “Money Monday” date!  Look at your bank accounts and look at your books.  QBO will show you the balance on each side and they should be similar.

This should give you some peace to start your week!  

We love helping our clients feel peaceful with their numbers and bookkeeping.  

Remember: knowledge is power!  

If you need some help, I give free calls and would love to hear where you’re stuck!  Maybe it’s getting a strategic plan, getting organized, or figuring out how to move forward.  We’re here for all of it.

#ildertonbookkeepingllc #knowyournumbers #bookkeeping #QBO #smallbusinesstips #entrepreneurlife #leadershipdevelopment #moneymonday #shopchs #shopmtpleasant

Jordan Ilderton

 

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