Habits…they’re what keep us on track and deliver results (especially bookkeeping habits, in my opinion).
I don’t have to tell you how important building good habits is….whether it’s getting regular exercise (sigh, I know, this can be a rough one), getting to the dentist regularly (another super fun one but oh so important) and keeping on top of your bookkeeping so your business stays on track.
But I know, it can be hard to stay on track with your bookkeeping and when things do get messy you probably feel overwhelmed, stressed and maybe even a bit ashamed.
But by creating those good habits, you can avoid those feelings AND reap the benefits of a bunch of other benefits. In this blog post, I am going over my top 5 reasons why building good bookkeeping habits is crucial. So no time to waste, let’s get started.
Reason 1: Analyze the Financial Health of Your Business
When you know your numbers inside and out, you can get a clear snapshot of your business at a moment’s notice. And that allows you to analyze how your business is doing, where your money is coming from and going to and allows you to plan for upcoming expenses.
Reason 2: Know When You Need to Increase Your Pricing
When you build good, consistent bookkeeping practices you really begin to understand which revenue streams are most profitable and which ones are not delivering…which can help you decide if you are ready for a new launch, ready to raise your prices and what streams to spend less focus on.
Ultimately, you want to be able to charge fair rates that get you paid, and oftentimes raising the rates is a part of that.
Reason 3: Not Be Surprised at Tax Time
Nobody likes tax-time surprises…unless it’s an unexpected return they are not typically known to be fun….or cheap. By staying on top of your books throughout the year you can save for tax time and have a pretty solid understanding of what you will owe when it comes time to file.
No nasty surprises that clean out your bank account and throw a wrench into possible plans you’ve got. A no-brainer, right?
Reason 4: Plan for Future Expenses
You have a vision for your business and how you want to grow it…and typically that means investing money into it (aka expenses) down the road. You want to plan for these so you’re not left cash-strapped when it is time to make those purchases or investments, and having a solid understanding of your numbers through good habits means you can plan properly. It means you can make those purchases that will up-level your business at the right time and when the money is there.
Reason 5: Understand How to Pay Yourself
Nobody goes into business for themselves to go broke. We do it because we love what we do, believe in what we can deliver and know we can make money doing it. But all too often, business owners don’t end up paying themselves. Sounds crazy, right? But it’s more common than you think…and you work hard. You deserve to get paid. Knowing your numbers is how you learn to make it happen.
The Final Word on Bookkeeping Habits….
Simply put, by avoiding building good bookkeeping habits you are doing a disservice to yourself and your business. You’ve got to set aside time each week to do your books, stick to it…and then hell, reward yourself when you’re done!
The more you know your numbers, the better equipped you are with the knowledge to make kick-ass business decisions and up-level. When you build those good habits you get that sense of accomplishment that you are taking care of your business and actually able to pay yourself.
Isn’t that what we all want when we go into business for ourselves? I think so.
The Number Nerd Bookkeeping Academy
If you’re feeling like you need some help figuring out how to create these strong habits then I’ve got your back! I’ve developed the Number Nerd Bookkeeping Academy to do just that.
When you sign up, you’ll learn how to…
- Stay caught up on your bookkeeping each month with solid systems and workflows
- Understand where your money is coming from and where it’s going—and use that knowledge to make empowered business decisions
- Feel confident handling bookkeeping on your own
And tons more.
You can learn more about joining it here