2 Tips for Business Financial Health 

2 Tips for Business Financial Health

Why on earth would you want to keep track of your money? Silly question right? Are you that person that has no idea where your money is coming from or going to? You log into your bank account every day to make sure you have enough money to get through that day and you’re not looking forward to making sure you have finances available to pay for the things that you have going on in your business. That is no way to run a business.

I know this from first-hand experience because that’s how I ran my business. In my first year, I almost went out of business until I learned that I needed to keep track of my finances, have a spending plan or budget, and that I didn’t necessarily need to look at my bank account each and every day to see if I had money available. Most importantly, I started using the accounting numbers that I was getting in real time to make real business decisions. So many business owners are reliant on a bookkeeper or accountant who takes 15 days to 2 months before closing out the books and giving you the information that you need to make real-life decisions. If you don’t have that data available, you’re just flying by the seat of your pants.

Here are a couple of tips to make sure you have your finances in tune:

1. Get accounting software. Personally I like QuickBooks. It’s online, connects with your bank accounts and gives you accurate reports.
2. Get an accountant. I a lot of people say “ I can’t afford to get an accountant.” The truth is, you can’t afford to not have an account to set up your books. Once you get your books set up, it is very easy to keep track of things. That was probably the best investment that I ever made early, early on in my career, and owning my business, is investing in an accountant who set up my books, and taught me how to use the software.

Getting an accountant who set up my book and taught me how to use the software was the best investment I made early on in my career.

Are you keeping accurate records? Are you making it easy for yourself? Are you using a software to make sure that you are making sound financial decisions? As you’re running a business, this is not the sexy part. It is oftentimes a part that most business owners put to the side but is the most important because cash is king. Once you run out of cash, you run out of business.

Send me an email at TOM@TOMJACKOBS.COM and let’s chat about any questions regarding your business and how I might be able to help you understand your business’ financial health and remain profitable.