Keeping Good Records

Record keeping is a necessary evil of small business ownership. But there is a world of difference between having a recordkeeping system and having a good record keeping system. So many things hang on your ability to keep quality financial records — tax reporting, budget forecasting, your ability to acquire capital — that it just doesn’t make sense to neglect this important task.

Here are some tips to help you establish and maintain a recordkeeping system that would make any small business owner proud:

Don’t be a hero — get help when you need it

Many small business owners can’t bring themselves to hire someone to handle their company’s recordkeeping needs. Instead, they try to handle the recordkeeping themselves, and hire staff to sell and market their products.

What these business owners don’t realize, however, is that they are doing their business a tremendous disservice. No, good recordkeeping won’t bring in any additional money in the form of sales. But it will certainly eliminate unnecessary expenditures such as overpaying taxes and financial inefficiencies.

And think about this: Every hour you spend muddling your way through recordkeeping is an hour you can’t spend doing what you do best — leading your company.