One of the most important reasons for entrepreneurs to have up-to-date Edmonton bookkeeping is so that they can have the proper information for making financial decisions in their business. Since industry Canada says that half of all Canadian entrepreneurs fail in business, 29% of those failed entrepreneurs say that the reason why their business was not successful was that they ran out of money. Running out of money is something that business owners can help avoid, simply by having up-to-date financial information in order to make better business decisions.
An example of how up-to-date interim financial statements can help entrepreneurs make better business decisions is if they look at their balance sheet and then their income statement and realize that their revenue had dropped, they can decide to increase their marketing activities, and cut expenses to get their profits back up. Another example of how utilizing information from Edmonton bookkeeping can help entrepreneurs make better financial decisions, is if they are going to make in purchase of equipment in their business to help them grow, by reviewing their financial statements ahead of time, business owners can verify if they have the money in their business to do that or not. If they do not, they will have avoided making a purchase that would cause financial disaster in their business. However, if the business owner sees that they do not have the money in their business to make the purchase that they need, they can formulate a plan on how they are going to achieve that goal and by when. This kind of proactive business planning can help entrepreneurs avoid running out of money in their business, and to be proactive in growing their business.
Not only should entrepreneurs be looking at their financial information on a regular basis, but they should also understand that by staying organized for Edmonton bookkeeping can help them get the more accurate and up-to-date interim financial statements as possible. The reason why is because if a business owner gives them organized financials, the bookkeeper is going to be able to spend more time making accurate financial statements than they would simply organizing.
Entrepreneurs should ensure that they have only one business bank account for operating expenses, one credit card and that they should keep those statements along with organized receipts and send them off to Edmonton bookkeeping once a month. This is extremely important so that their bookkeeper can get them interim financial statements on a regular basis.
By learning how to get organized and stay organized, Edmonton business owners are able to ensure that they can operate their business in such a way that they cannot only avoid financial problems but be proactive in growing their business. By doing this, entrepreneurs can be certain that they are avoiding one of the most common reasons why entrepreneurs in Canada fail. By avoiding this common reason for failure, entrepreneurs can exponentially increase their chances of succeeding in business now and into the future.
Many entrepreneurs start their business with the best of intentions thinking that they will be able to do the Edmonton bookkeeping themselves, then spend far too much time on building their business that bookkeeping falls to the side, and as a result their not able to use up-to-date financial information to guide their business decisions. The reason this is so important, is because industry Canada says half of all entrepreneurs fail in business, and out of those failed entrepreneurs, 30% said that they failed because they were not able to stay cash-flow positive in their business. Therefore, entrepreneurs need to make it a much higher priority to get their books done.
One of the simplest ways to do this is to hire Edmonton bookkeeping to keep track of their finances for them. This way, a business owner can focus on what is most important in their business, which is to grow it and to find new customers and to engage and marketing. By letting the experts keep their finances straight, business owners can focus on what is important to them, while having the most up-to-date and accurate information to help guide their decisions.
However, no matter who does the Edmonton bookkeeping, an entrepreneur or another company, a business owner needs to understand that they need to be very organized in order to make their bookkeeping easier. Even if they are not doing it themselves, business owners need to ensure that they are keeping their receipts, there organizing those receipts, and making notes on anything important. For example, if the business owner has a receipt from Amazon, they need to take note of what they purchased with that receipt so that the bookkeeper can attribute the expense to the right account on the income statement. Not only does an entrepreneur need to have their receipts organized, but they also need to ensure that they providing up-to-date bank statements and credit card statements on a regular basis.
Business owners need to ensure that there getting this information to their bookkeeper on a regular basis so that their Edmonton bookkeeping can get them interim financial statements every two weeks. It is extremely important that they get these financial statements that often, so that they are able to disburse payroll. By getting into the habit of reviewing their finances before dispersing payroll, business owners can ensure that they have the money in their bank in order to make those payments. The last thing a business owner should do is balance a payroll check. Edmonton bookkeeping says that to have to work on financial statements only once a month actually leaves it too far apart, and it becomes less of a useful financial tool for business owners.
When entrepreneurs are able to utilize financial statements in their business, they can use that information to help guide their business decisions to help them grow their business as well as avoid the reason why so many entrepreneurs in Canada are failing in business.