Technology has afforded the small business owner many ways of streamlining their day to day operations. One of the most helpful technological advances is financial software. QuickBooks, for example, provides an excellent platform for business owners to track their financial information however, there is a pitfall! While it’s fairly easy to learn the mechanics of entering information into QuickBooks, it takes a certain level of accounting knowledge to know how to set up the Chart of Accounts as well as where to allocate those entries. This is where accounting knowledge and expertise comes into play. In addition, making sure the entries have been allocated properly and in their entirety is necessary for proper reconciliation and financial reporting. Not to mention analyzing the resulting financial reports.
So, depending on the type of business, the number of financial transactions, the degree of detail in computing margins, costs etc., there are any number of criteria that can affect the degree of expertise that will be needed. Bottom line: small business owners are experts at what they do or they would not be in business for themselves however…that does not mean they have the time and/or expertise to effectively manage the financial side of their businesses. So why not allow a well-trained bookkeeper/accountant do what they do best and assist with the accounting.
What will this do? It will free up the business owner’s time to manage and grow their business and know that the financial information is being tracked properly. Solid and timely financial information also allows business owners to make informed business decisions which in turn will help maximize profitability. After all, isn’t that what we’re in business to do?