Entrepreneurs are some of the busiest people, learning how to operate their own business and grow it, but sometimes by being busy they allow their Edmonton bookkeeping to fall aside. Thinking that they will be able to do their books, later on, business owners are putting their business in danger of not having up-to-date financial information. It can be very tempting for entrepreneurs to work on the urgent instead of the important, but if they get into this habit early on, business owners may find they have financial problems because they are unable to make good financial decisions in their business.
Having up-to-date financial information can help entrepreneurs significantly making any financial decisions in their business from if they have enough money to pay their staff for themselves, if they are considering purchasing assets in their business to help your business grow, and even to see their expenses in their profit. By being familiar with their interim balance sheet and income statement, entrepreneurs can learn how to use that information to guide their financial decisions in their business.
In order to have up-to-date financial information from Edmonton bookkeeping, entrepreneurs need to learn how to be organized early on so that they can send the correct and most up-to-date financial information to their bookkeeper on a regular basis. This means business owners need to be keeping their receipts, making notes on each one about what they were purchasing and why, and then being able to print off up-to-date bank statements and credit card statements for their bookkeeper to use.
In order to help keep their financial information simplified, entrepreneurs should from the very beginning of their business, learn to only have one bank account. That one bank account should be used for all operating expenses of the business. There may be some instances where a business owner needs to utilize a credit card, and so they should be very strict about having only one business credit card. The fewer bank accounts and credit cards, make it easier for their Edmonton bookkeeping to stay organized and make accurate interim financial statements.
Not only should entrepreneurs only have one bank account and one credit card, it is also important for entrepreneurs to not get into the habit of using their personal bank account for business. This is even more difficult to keep organized than many business bank accounts, therefore Edmonton bookkeeping strongly advises against this. While if it happens occasionally, a bookkeeper will be able to attribute those amounts to the shareholder loan in the corporation, but it is always going to be easier, simpler and more organized for entrepreneurs to avoid this practice from the very beginning.
By having organized the finances, business owners can help their bookkeeper give them proper interim financial statements that they can then use in their business to guide their business decisions. These financial decisions being made with accurate financial information will help entrepreneurs see their business toward success
If entrepreneurs are not getting up-to-date Edmonton bookkeeping in their business, they may struggle financially. Industry Canada says that 50% of Canadian businesses fail before they have been in business for five years. 29% of those failed entrepreneurs give the reason that their business failed as they ran out of money. Business owners can help their business avoid this fate simply by adding their bookkeeping done, and utilizing those interim financial statements to make business decisions.
No matter what financial decision an entrepreneur needs to make, whether it is paying staff or themselves, or increasing their profits or minimizing expenses, all of those things can be made a lot easier by having current financial statements. Business owners should get into the habit early on of not only learning how to read their balance sheets and income statements but to use the information proactively in their business to make great business decisions.
In order for entrepreneurs to have the most accurate financial statements possible, they need to get into the habit early on of getting organized and staying organized. This means ensuring that all of their business receipts are capped and clear records kept of what was purchased with each receipt and why, as well as having current bank statements and credit card statements in that month. By sending this information off to Edmonton bookkeeping on a regular basis, entrepreneurs will be in a better position for receiving up-to-date interim financial statements.
Business owners should find Edmonton bookkeeping is going to be giving them biweekly interim financial statements. The reason why biweekly statements are so important is that entrepreneurs often pay their staff every two weeks, and being able to review those statements before disbursing this payment to their staff is an important step in verifying they have the money to do so. The last thing a business owner will want to do is to bounce payroll. By getting into the habit of reviewing their finances before they make those payments, a business owner can be proactive if they discover that they do not have the money to make that payment. They can either generate new revenue or engage in some Accounts Receivable in order to ensure they make that payment.
In fact, any time and business owner is going to make any financial decisions in their business, they should get into the habit of reviewing those interim financial statements. Many business owners think that they can get the most up-to-date financial information by looking at their bank balance, but Edmonton bookkeeping recommends that entrepreneurs do not get into this habits simply because the bank account will not show them all of the payments that are scheduled to come out either through E transfers, financial disbursements, or checks. By looking at their financial statements, business owners can be sure that all of the money that shows in their business is money that they can use, so that they can avoid running out of money or by making poor financial decisions.