Numbers don’t lie.
The biggest mistake small business owners can make is not knowing the numbers of their business. Read this post on why small businesses fail.
Some people don’t make the time. Some people don’t have the proper systems set up. Some people think they don’t know enough. WELL, the answer is simple: make the time, get yourself organized, and learn.
Finding the time is about prioritizing. Without understanding your business finances, you cannot know whether you are making money or just spending it. I pretty much think that knowing the health of my business is a priority. Carve out 2 hours every 2 weeks to sit down with your books. It could mean that you have to wake up that much earlier to get it done. If you want to make it happen, if you realize the importance of it, you will make time for it.
Find a system that works for you. Set up files to keep your receipts and devote those 2 hours to imputing them into a spreadsheet or Quickbooks. We cannot say enough about Quickbooks. The program is easy and user-friendly. There are both PC and Mac versions of the software. (We hear the Mac version is a little buggy so we also recommend the ONLINE version which you can use anywhere.)
If you feel a little uncertain about how the all the numbers play into each other, educate yourself. There are so many free resources on business finance (including Sage Wedding Pros’ blog!) Once you’ve carved out the time, spend some of it learning how the numbers work and how they affect your business. If you want to feel more comfortable, take a basic accounting course at a community college. Take a Quickbooks tutorial online if you want to familiarize yourself with the software.
Accounting is the backbone of all business.
If you know your numbers, you will understand your business.
For more wedding business insights… read our sage declarations.
by Michelle Loretta
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