Thursday, July 14, 2011

Invest in Record-Keeping, Reap the Rewards

Even for the most lean, bootstrapped business, it can be expensive to keep your doors open. Expenses rack up pretty fast, and it becomes difficult to spend on anything that is directly related to getting and keeping paying customers. That's why many entrepreneurs and business owners don't allocate adequate resources to the accounting and finance function of their businesses.

But keeping your books and reporting up-to-date is more than just an expense--it's actually an investment that can generate measurable, tangible returns if it is done effectively. In a recent guest blog post I authored for lendio.com titled 4 Reasons Your Financial Statements Keep you from Getting Funded, I share just one of them many benefits--effective debt and equity financings.

But the real benefits stem from the clarity that you will gain about the performance of your business, and this clarity paves the way to making to sustainable improvements to in your cash flow and profitability. These benefits do not come, however, by simply hiring a bookkeeper to handle the accounting transactions. That is part of the solution, but the result needs to be Insightful, Meaningful, Precise, Accessible (both through SaaS and intellectually), Comparative, and Timely (IMPACT Acronym) reports that deliver real clarity in the past, present, and future.

Empowered with the right quantitative data in the right format and context, you will be in a position to make the best decisions possible and maximize the potential of your business.