Is Your Accounting System Holding You Back?

Facebooktwittergoogle_plusredditpinterestlinkedinmailby featherPost-it notesWhen you’re a busy business owner, it’s easy to let accounting fall by the wayside. There are projects to complete, employees to manage, and well, bills to be paid. But before you know it, your exciting business growth and your accounting system can veer off in different directions, leaving a big mess in their wake. Think of it this way: your accounting system is the script for the story of your business. If the script leaves out important details, no one can follow the story. If your team can’t follow the story, your business can’t grow.Follow these four tips to make sure that your accounting system helps, instead of hinders, your business growth.Consider your current accounting system. What works right now? What’s confusing? Next, think about what you’ll need to know when your volume doubles, triples, or scales. Remember that the data you collect impacts the reports you can generate–and the planning you can do based on those results.Your system should help you run your business all year. Don’t let your accounting system exist just to help you with year-end tax preparation. In addition, note that income you track should be matched with the expenses associated with that income. If your timing isn’t aligned, you’ll be forming the wrong conclusions about what’s happening in your business.Who’s responsible for your accounting system? If it’s you or a member of your team who’s responsible for sales or marketing, your accounting may suffer. Taking on too many tasks can lead not only to cash flow shortfalls or stressed partner relationships, but it can also stunt your overall growth.Make sure your accounting and marketing work together. If you’re working toward growth, your best bet is to establish your product/market fit early on. Are you selling something that people want to buy—for your price? Your accounting system has to capture data that helps you track results, and your marketing and sales team should have a crystal-clear understanding of your customer base.The bottom line: If you’re an owner who’s still doing your own accounting tasks, it’s time for change. Delegate, use technology where you can, and be vigilant for process bottlenecks. Your time is best spent growing your business!Facebooktwittergoogle_plusredditpinterestlinkedinmailby feather