The Bookkeeping “Hat”

Sunday mornings on MSNBC there’s a show named “Your Business” (@OPENForum). It’s a show based on helping small businesses. This particular week was a repeat about a makeover for a Bed & Breakfast in CT, Abbey’s Lantern Hill. The owner perfectly illustrated most small business owners; One owner, many hats. The owner handled marketing, sales, accounting, and operations. Sound like you?

When it came to the accounting system, it turns out there wasn’t “much” in place. A Quick Books expert was brought in, taught the owner how to use the software and set up a system the owner was comfortable working with. Sound like us?

It’s true! Most small business owners do not have an accounting system in place. Either they hand a shoe box of receipts to their accountant at the end of the year or “guestimate” and file their own taxes. This is problematic for a few reasons.

• Can you tell what product produces a majority of your sales?
• Can you tell what type of client is most interested in your services?
• Can you tell where your expenses are going?
• Do you know how much money you owe to the bank? The vendors?

If you’re note keeping track, you won’t know where to focus your marketing budget. You won’t know where to cut back on expenses. Most importantly, you won’t avoid any sort of fines and / or penalties should you be audited.

The Virtual BackOffice, LLC is available to put together an accounting system that works best for your company. For a one time fee VBO will create your chart of accounts and teach you how to keep track of your records on an on-going basis. Or if you prefer, for a subscription fee, VBO will keep track of your bookkeeping on an outsourced basis. Contact us today to discuss what we can do for your company.