Do you know any business owners where every year, the end of the year has snuck up on them? How about someone that realizes it’s April and decides it’s time to reconcile all of last year?
Of course of you do, and they all talk to themselves. If you are within listening distance, you can actually hear them saying things like “Where is the accountant’s phone number?”, “I can’t believe this is happening again”, or my personal favorite…”I will never do this again!” These are classic examples and responses of irregular bookkeeping, and lead to unnecessary stress.
Those who fail to plan, plan to fail type stuff.
Before you laugh too hard:
When is the last time you spoke with your accountant about your company’s numbers this year?
When is the last time you reconciled in QuickBooks?
Could you run a Profit & Loss and Balance Sheet Reports and compare them to where you were last year…right now?
I’ll give you a hint, the answers should be:
I spoke with my accountant last quarter, or within the July-September time period.
EXTRA BONUS if you say this month ABOUT the last quarter
I last reconciled my books in October or September.
“Yes, I can run these reports in QuickBooks.” This also means you have been regularly entering ALL of your information into QuickBooks throughout the year and you don’t have a giant stack of papers on some desk in the office waiting to be input.
Fellow business owners, October is winding down, start now! November and December are coming and you and I both know those are not “highly productive” months for the books. We will be actively thinking about Thanksgiving and Christmas, and the next thing we know, it's January. You have at least 3 solid weeks before you really have to start planning for Thanksgiving…Start now!!
Start by reconciling your bank accounts if you are not currently reconciled through September 2017. Yes, that includes any and all credit cards you have!
Make sure to print out your Financial Reports:
Run a Profit & Loss through the end of September and see what it looks like. How does it compare to a Profit & Loss through the end of September last year?
Run a Balance Sheet through the end of September, is everything accounted for? Are you making money, losing money or about where you expect? Is that normal for this time of the year?
If you start now, even if you do nothing else until January, you could potentially have the first nine months of the year done! You might even look forward to that meeting or phone call with the accountant at the beginning of the year…You do schedule an actual meeting with your accountant at the beginning of the year right? You know, to go over the game plan for getting everything to whoever does your taxes.
If you are reading this, and they seem like good ideas, choose not to be just a reader of these words, but a doer! Imagine if you do this, your whole perspective changes on some of the things you have to do for the remainder of this year.
You could actually reconcile November when you get the bank statement because it would only be one month to reconcile. You will have the same thought process when December comes because its only one month to stay current, not get caught up.
You could look at your Profit and Loss and actually forecast your income through the end of the year to have an idea of what your taxes are going to look like AND still have some to time affect that outcome in a positive way.
Can you see start to see the power of doing the books consistently? Can you sense the calm you would have at the beginning of the year? Join me, let’s get started right away and put an end to the inconsistent order in which you used to do your books!
52 Days until the Last Jedi...