Is Your Head in the Sand Too?
It’s so easy, isn’t it? To know deep down that we should really look at something but we don’t want the bad news so we ignore it, hedge, procrastinate. I went to the dentist yesterday after putting it off for five years. But I love how clean my teeth feel today! I wish I’d gone sooner and had a chance to prevent the six fillings I now need. Yes, six. Embarrassment. Money. Time. Pain.
When we don’t face up to things, we delay the preventative and corrective measures from being implemented and the numbers get worse. As Accountants and Bookkeepers, we are like the dentists of small business. You love to hate what we tell you. But we want you to know these things sooner.
Companies like Xero have spent millions developing software that allows small businesses to have the same timeliness as the corporate giants. You CAN see every figure you want to see the day after the transaction has occurred. Can we get a standing ovation? You CAN see your profit and loss for yesterday! Previously in small business, this has been an unheard-of advantage. Financial reporting, measurement and comparison had to wait until the bank statement arrived and the snail mail processed. Now you can access yesterday’s figures on your phone, anywhere in the world.
We know that some people like figures and some people don’t. It’s really hard if you are one of the “don’ts” to be motivated to check your Profit & Loss and Balance Sheet every week or month. But it’s like cleaning your teeth; if you keep an eye on your figures regularly, there won’t be any surprises as BAS time or Income Tax time. Checking the figures regularly actually relieves fears and strengthens goals!
I challenge you today to have a play with your bookkeeping software, to look at your Profit & Loss from July to December 2016, compare it to July to December 2015 and look at your Balance Sheet to check the balances of what you own and owe. Try out some other reports and compare this year to last year. Are you happy with the differences or have some holes appeared? Any little surprises? Dig deeper and see if there is an issue. You now have the chance to sort it out before it becomes a big surprise. If you need a hand to understand or process the numbers, or you come across something scary, we are only a phone call away!
If you have any questions or need to fix something scary, please do not hesitate to contact our office on 07 4151 8898.
Amanda Wolff | Bookkeeper | The Money Edge | Bundaberg