3 Things You Need To Do Now If Your Books Aren’t Adding Up

December 2, 2020

Your company books are quite literally a running total of the financial matters of your business. They will tell you how much money is coming in, plus how much is leaving your business too. Finding a Bookkeeper is also highly useful when it comes to filling in your tax returns, as they can help you plan for the future. 

But bookkeeping isn’t always plain sailing, especially when you can’t get your books to balance. 

Here are 3 things you need to do now if your books aren’t adding up to tell you more. 

Hire A Bookkeeper

It sounds obvious, but if you are simultaneously trying to run a business and keep up with your books, it’s so easy for errors to slip through the net. After all, the more your attention is pulled in different directions, the less you can concentrate on individual tasks. That’s why it pays to hire a professional in the form of a bookkeeper who will take care of all the hassle for you. 

The benefits of doing so are that you can track problems earlier. So in the case of your books not adding up, you can figure out a plan to move forward. For example, reducing expenditure, applying for a business loan or pushing more profitable promotions. But without an accurate account of what’s happening with your books, this just won’t be possible. 

Meet With Your Accountant

You might be wondering why you need an accountant if you also have a bookkeeper. Well, accountants aren’t there to track every single transaction coming into your business – that’s a bookkeeper’s job. Instead, accountants react to the figures they are being presented with so that they can file your tax return or give you business advice. In some cases, bookkeepers and accountants work in tandem with each other too.

Be sure to meet with your account as soon as you notice a problem with your books. If your cash flow is significantly down, you need to get on top of the reason and come up with a solution. It’s always great to keep in regular contact with your accountant, as you can’t build a successful business without the right financial advice. 

Revisit Your Business Model

All businesses go through highs and lows where the books are concerned. Though sometimes, the problem is the business offering in itself. From a lack of market research to the wrong pricing, there are a lot of things that can trip you up if you aren’t careful. If your books aren’t adding up, then it’s time to go back to the drawing board to see if you can streamline your offerings in line with what your customers want. 

Although some tough changes might need to happen, this approach will make your business more watertight in the long run. Take a closer look at your books, and see when the problems started and what caused it. Then adapt your business model to suit. Look at ways you can plug any gaps in your finances, and keep working on the situation until your books recover. Use the experience as a lesson going forward. 

To Sum Up

No business owner wants to see their books in the red. But by acting fast, you can turn the situation around. If in doubt, getting a professional bookkeeper to complete your books can help you avoid any headaches in the long run. 

By making sure your books are accurate and up to date, you are best prepared to deal with all that running a business has to throw at you.

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