Call it a habit or just refer to it as downright procrastination. A lot of business owners, MBA holders and other business professionals only contact their accountants on two occasions: during tax season and when something goes wrong. It’s easy to guess that your business is swimming in money and that all your accounts are paid if you simply glance at your books and balances on occasion. However, only certified accountants or online bachelors of accounting graduates know what is necessary to reconcile all your business accounts and how to maintain a proper paper trail. You may not need to have a company-wide audit, but you should be aware of how all your business funding is being saved, spent, and generated.
Know When Money Goes Missing Immediately
Did you know that a good portion of businesses are being charged for services that they don’t need or never authorized? For example, you could be paying for a business line that was never installed or activated due to a billing error being made by your telephone company. The minute that you have an online bachelors degree in accounting holder balance your books and review all accounts, bills, services, and subscriptions, you can find out if any money is being wasted or has gone missing. This is also helpful for companies that have had trusted employees mismanage funds or steal in the past.
Find Out How to Stop Making Critical Financial Mistakes
You don’t need to be frivolous to waste business earnings on expenses that are completely avoidable. If you don’t know the current status of your business accounts, you could end up overdrawing a business bank account when you have more than enough money in another bank account to cover all expenses. You could also be paying extra in credit card interest simply because you are missing the payment due date each money. Allow your accountant to aid you in getting more organized so that none of your profits are squandered because of financial mismanagement.
Being Financially Responsible Will Help to Grow Your Business
How can you explain to potential business partners that your company is growing if you don’t know your own financial figures? If you can’t make new business partnerships, your business is not going to grow as big or as fast as it is capable of. You need an understanding of how your company has changed for the better with increased revenues so that potential investors have faith in your future. Ask your accountant to review your finances over the past year and create a spreadsheet that shows your positive gains.
Knowing where your business income is coming from and how it is being spent will reduce waste. In addition, knowing these facts will make you more prepared to talk facts and present a balanced image of a growing company. Don’t try to balance your business ledgers and calculate your revenues once per year. Instead, have at least one update on all accounts payable and receivable from your accountant once per month.