Our Favorite Summer Activity
It’s summer! 😎
Memorial Day cookouts are behind us, pools are open, and school is finally out. It’s time to do what you’ve been dreaming of all year: 🏖️
Initiate a thorough review and clean up of your business’s financial records.
[crickets] 🦗
What? That’s not the first thing that comes to your mind when you think of sunshine and warm weather? It might not be the most exciting thing on your to-do list right now, but it’s actually the perfect time to do a cleanup job on your books.
Since summer is a slow (er? ish?) time for many, this is an opportunity to focus on administrative tasks without the pressure of peak business operations. Plus, a mid-year cleanup gives you a clear picture of your financial health. It allows you to adjust your budget, forecast more accurately, and implement any necessary changes before the year ends. By the time the busy holiday season arrives, your books will already be in order, reducing stress as you approach the end of the fiscal year.
But why do a cleanup at all, and how do you know if you need one?
If you haven’t been working with a professional bookkeeper or accountant, or you’re not happy with the job they’re doing (or you’re not sure how their system works at all, actually)--you probably need a cleanup.
A cleanup job is something we do for a lot of new clients, especially those growing from startup to the next phase of their business development. This can include:
Reviewing transactions to ensure all transactions are properly recorded.
Reconciling accounts to match your records with bank statements and other financial documents.
Correcting errors by identifying and fixing any discrepancies or mistakes.
Updating records to make sure all financial data is current and complete.
Organizing documents, such as sorting and filing receipts, invoices, and other financial documents for easy access and reference.
That’s what we do. But here’s what it means for your business and peace of mind:
1. Accuracy and compliance: An organized set of books ensures your financial records accurately reflect your business’s performance. Additionally, proper records help you stay compliant with tax regulations to avoid penalties or fines.
2. Better financial management: Clean books provide a clear picture of your income, expenses, assets, and liabilities, allowing for better financial planning and management. This allows you to identify cost-saving opportunities and areas where you can improve profitability.
3. Improved cash flow: It’s easier to track unpaid invoices and follow up on overdue payments, improving your overall cash flow. You can see when money is coming in and going out, and plan accordingly to avoid surprises.
4. Informed decision making: Whether you’re considering expanding your business, investing in new equipment, or hiring more staff, having accurate financial information is crucial. You can also set more realistic budgets and financial goals based on up-to-date information.
5. Easier tax preparation: When tax season rolls around, having clean and organized books makes the process much smoother. You’ll have all the necessary documents and information ready, reducing the stress and time spent on tax preparation. It also minimizes the risk of errors and audits! (While Breakaway does not prepare or file taxes, we promise you’ll be your CPA’s favorite client when you bring them a clean set of books in January.)
6. Enhanced professionalism: Having tidy financial records presents a professional image to investors, lenders, and potential partners. It shows that you take your business seriously and manage it responsibly. If you ever need to apply for a loan or attract investors, clean books will significantly improve your chances of success.
Cleaning up your financial records can be time-consuming, especially if you’re not familiar with accounting software and procedures. A professional can handle the cleanup quickly and accurately, freeing up your time to focus on running your business. Most importantly, knowing that your books are accurate and up-to-date will provide you the peace of mind and confidence you need to move your business forward.
If you’d like to learn more about how a cleanup could help you achieve your strategic business goals, visit breakawayba.com/contact-us. We’d love to meet you!
