There's Strength in Numbers
For the past few months I have been working with business owners, whether setting up a new business, forecasting in preparation to re-open, and sadly, helping some finalize their books to close their business for good
Going through the process of helping a business close, I was horrified to see some serious accounting mistakes that contributed, more than COVID-19 had to the business closing it's doors. The business owner shouldered the blame for not checking the work of the bookkeeper closely enough, but I couldn't help feeling this was not where the blame belonged. My take is that the business owner is not a bookkeeper and therefore, did the right thing by hiring someone that promoted themselves as a "Qualified Bookkeeper", and trusted the information being provided by this bookkeeper.
Although we were able to find $7,000 that will be refunded to the business, in the end, it still cost the business owner Thousands of $$$ for the mistakes made and inevitably, the closure of the business.
My advice, if you run a business or are planning to start one, I do strongly recommend using a bookkeeper, but do your due diligence and choose someone that insists on reviewing your numbers with you on a monthly basis. It is through discussing the financial picture of your company that helps you understand the flow of money in and out, and you will become more likely to see things that look out of place.
Below is a short list of some of the topics you and your bookkeeper should review monthly:
Ways to increase profits
When you should incorporate
If you have questions about starting a new business or the financial picture of your existing business, reach out to us for a Free 1 Hour Consultation!