There are few measures all businesses have to care for no matter what type of enterprise they run, but those that apply universally are of the most importance. For example, it doesn’t matter if your company is out to earn as much profit for private use or shareholders as possible, you still operate under the same legal code and baseline financial principles as non-profit charities. To use an outlandish example, both companies will probably look down upon the idea of executive embezzlement.
However, while these practices and protocols may be considered so important and necessary to achieve, its because of that mindset we see some business owners taking practices for granted. As such, it’s always good to ask “why,” and to understand the exact reasoning for a given practice effort.
For example, if you’ve had a bumpy start with your business bookkeeping after launch and initial success, how can you untangle that? Few business guides offer such advice. We hope to help fix messy business books by combating that trend below-
Three strategies to fix messy business books:
1. Consolidate Your Records
If your books are messy, it’s usually because nothing’s in the same place, and when nothing’s in the same place, you can’t really fix anything, as you don’t know what’s missing or what’s already been done. Bring everything into one folder, print it out, write it down, the format doesn’t really matter at this point, it’s just essential to make sure you’re not chasing files around or chasing up your outsourced staff because you forgot to record an invoice. This can help you submit this to a financial advisor or accountant to at least begin the conversation, and it should help you avoid losing essential info further.
2. Speak To Helpful Financial Advisors, Or Those With Comprehensive Experience
A good financial advisor or accountant who’s worked with businesses like yours can spot issues you’d never notice and fix problems that would take you weeks to figure out on your own. That’s important in this kind of emergency.
Don’t go for the cheapest option you can find, as this isn’t the time to pinch pennies. Find someone who thoroughly understands your industry and has helped other businesses clean up their books. Have a proper conversation before you commit. Check their history and perspective, such as through the thought leadership offered by Andrew Feldstein Montaigne leading in the financial space. It will inspire you to keep going.
3. Speak To Tax Authorities Proactively
Speaking to the taxman (or woman) makes most business owners break out in a cold sweat, but luckily, tax authorities would much rather work with you than against you. If you’ve got a mess on your hands and you’re worried about compliance issues, reaching out before they come knocking shows good faith.
Most tax offices have helplines and resources specifically for small businesses. They can often point you toward programs that help you get back on track without the scary penalties you’re probably imagining. The key word here is “proactive” – don’t wait until you get that letter in the mail with a strong question or the threat of an audit. You can work your way out of bad bookkeeping, but not wilful ignorance.
With this advice, you’ll be sure to fix messy business books and learn the importance of such a pursuit once everything is in place.
