Ok so I know there are a lot of DIY Entrepreneurs out there.
First, let me say, there is nothing wrong with wanting to handle things yourself and be in control of your books. Let's talk about some things, things that are really concerning to me.
Let's talk about your balance sheet (and if you are doing your own books you should know what it is and how it works right )
Let's talk about negative assets and liabilities. Unless you have overdrawn your business bank account or overpaid your business credit card, You should not have negative assets and liabilities.
I can guarantee if you have negative assets and liabilities you most likely have some other issues going on within your file that is causing you to not have an accurate picture of your business
Not knowing how much it cost you to sell items in your inventory. I'm talking to everyone who sells physical products and digital products (salon owners selling cosmetics, online coaches selling Ebooks ). Without truly knowing what your items are costing you is a disaster. How will you know if you should expect a profit at the end of the quarter? The proper way to account for this is within your profit and loss statement. I have witnessed so many business owners lacking this key area of their profit and loss statement.
Not accounting for outstanding bills due and money to be received. If you are invoicing clients (meaning that you send them a bill for money they owe you) but you don’t include this on your books, you are clearly undervaluing your business and probably understating your income. If you owe money to vendors and you don’t include this on your books you are overstating your income. Both of these scenarios can lead to tax disasters.
So tell me , how do your books look? Is all of the above in order.
Let's talk about it. If you are a serious Entrepreneur click here to book your complimentary discovery session.