We’ve talked about bookkeeping all this week, and its importance to your business. However, some of you still aren’t convinced. That’s okay; there are two sides to every coin. You stand to gain much if you have proper bookkeeping. However, what do you stand to lose if you take the risk of not having your books in order? The answer varies from business to business, and by extension, person to person.
You miss out on opportunity without proper bookkeeping! There are far too many to list, but we’ll stick to the surface level. If you’re the boss or the CEO of that company, you miss the opportunity to grow your business exponentially; you don’t have the financial data that you need to make decisions that are beneficial to your business! Far too many business owners go with their gut feeling. While that “gut feeling” can sometimes work out, it is no substitute for proper financial records! If anything, your gut feeling can be solidified in conjunction with the bookkeeping! The lack of bookkeeping means you’re missing the opportunity to know what’s going on in your business at all times.
This is especially true of those of you building a business on the back of your 9 to 5, or investing your family’s day-to-day money to build a business. You stand to lose that money that you’ve invested without bookkeeping! There’s also an accountability aspect to it. You can check your bank account and say that you have a certain amount of money there. However, without bookkeeping, do you really know if your business is growing or failing? Bank statements don’t determine the growth of your business; financial statements do!
What else can you stand to lose without bookkeeping?
- You can miss chances to get loans! Bank lenders give loans based off proper financial records, and some lenders can ask for up to TENYEARS of prior financial records before they make a decision!
- You don’t only miss loans from bank lenders; you can miss loans from your future venture capitalists, and future buyout options!
- You can even miss the chance to transfer your business to your family!
- Kiss certifications goodbye! Some business certifications (such as the MWBE) are difficult to downright impossible to obtain without those financial statements!
- Bidding contracts! There are big businesses that may need your services, and some of these contracts can grant millions to small business owners, but you wouldn’t be able to bid without the financial statements that reinforce your brand!
- Joint ventures! Bigger business may come knocking at your door wishing to partner and help you grow, but without your financial statements, they take on lots of liability, and may not be so inclined to sign on the dotted line.
- If you have a brick-and-mortar location, a lack of proper bookkeeping can affect your ability to get insurance!
The things that you do today have an impact on your tomorrow! Start your bookkeeping today and contact us, so that you can have a successful tomorrow, and further beyond!