There have been a few stories of bankruptcies in the news lately and how it affects the clients of the business affected. This got our bookkeepers wondering are there other businesses out there that we can help before it gets to this point?
As a business owner how can you avoid the troubling financials and potential consequences? Well are we ever glad you asked!
1. Pull your head out of the sand
If you do nothing and ignore even the smallest blips in your business it can come back to bite you. If you have outstanding amounts owing to your creditors and you do nothing what will happen? The creditors will increase their efforts to get money from you, and your situation will get worse.
Make sure you are always aware of not only the bills your company must pay, but also the money outstanding that is due to your company.
2. Hire a qualified Bookkeeper
This is a crucial step. When you start a business it is one of the first things you should do. The sooner your have a great bookkeeper taking care of you either in house or external the better. We have found in our experience that some of the people that wait or try to do it themselves end up spending more overall on bookkeeping services than those who found a bookkeeper immediately.
3. Get yourself a great Accountant
Your accountant is a very important part of your company’s financial team and imperative for financial wellness. Accountants not only do your year end accounting and file your income taxes, but they offer invaluable advice for businesses that help to keep you on the right track.
4. Talk to a Financial Planner
Financial Planners will help you with life insurance and investments. They have so much to offer their clients to keep them in great financial wealth and to plan ahead for the future should something unforeseen happen. These rock stars can also help you retain employees but providing benefit plans, rrsp's and pension programs.
5. Know what you are good at
The best advice we give all our clients is "Do what you know". If you hate numbers and the thought of coming home to a pile of paperwork makes you cringe and rather do house cleaning or other tasks, you need a bookkeeper pronto! Is this a bad thing you ask? NO WAY! We love what we do and love to help business owners reduce their stress and get back to doing what they love!