Just because you’ve decided to start running your own small business doesn’t necessarily mean that you’re going to develop incredible skills in managing your finances. The truth is that while choosing to establish a company and be your own boss can be incredibly rewarding, it also gives you a lot more stress to deal with in terms of money. No longer are you simply responsible for managing your own personal finances, but you also need to think about and analyze the financial transactions that take place within your business.
There are plenty of articles out there that will tell you the benefits of hiring a professional bookkeeper to take over this task on your behalf, but few of them actually address the emotional impact that getting your finances in order can have on you, and the people you’re working with. Let’s face it – running a business isn’t easy, and getting rid of some of the most complicated parts by outsourcing them to a professional can be the defining step that turns your entrepreneurial ambition from a nightmare, into a dream come true.
The first thing you’ll feel when you get your finances under control with the help of a professional bookkeeper, is freedom. Not only are you free to focus on the other parts of your business that don’t drive you insane with countless figures and spreadsheets, but you’re also free to remember what it is that drove you to opening your own company in the first place. You get to go back to doing the things that you enjoy, and focusing on the parts of your business that you’re passionate about.
At the same time, having your finances in order means that you’ll have more freedom when it comes to applying for business loans, appealing to creditors, or getting involved with investors. After all, the more you can present yourself as a well-organized and financially-stable company, the happier other people will be to work with you.
Remember the initial strain of attempting to fit every task associated with running a company into your crammed schedule? Hire a bookkeeper to sort out your finances, and you’ll open up space in your calendar to think about other things. Instead of worrying constantly about whether you’ve worked out the invoices correctly, or filed away your finances to properly meet with tax regulations, you can have the peace of mind that comes with knowing someone else is in charge of that for you.
How you use this peace is up to you. Some business owners might utilize their free time in coming up with new ideas for the business, whereas others might try to find a better work-life balance by spending extra time with their family.
Knowing the numbers that keep your company running will give you a better insight into your financial situation, and whether or not you can count your business as being “successful”. When your finances in order, you gain access to a comprehensive insight into the workings of your business, from which products are bringing in the most money, to which suppliers are taking the largest chunk out of your budget.
Savvy business owners can use their new-found clarity to search for better deals when their suppliers are charging too much, or update their advertising efforts for certain products. You might even use your financial insight to get rid of parts of your business operations that are currently holding you back.
Looking at the numbers in your financial spreadsheet doesn’t just have to be a step in increasing business productivity and efficiency. It can also be a moment that allows you to take some pride in everything you’ve accomplished so far. It might seem insignificant, but the truth is that if you’ve got more money coming in than you’ve got going out, then your business is successful, and you have the right to be happy about that!
Bask in the achievement of your hard work – just don’t let it go to your head.
Finally, getting your finances in order means that you’ve finally figured out how to walk the razor-thin tightrope of your profit margin effectively. So long as you keep going down the same track, and using the right resources at your disposal, you should be able to feel a sense of stability – at least for the meanwhile – in regards to your business operations.
You’ll also have access to the sense of stability that comes from knowing that a mistake in your accounts isn’t going to send your company off the rails thanks to trouble with the taxman.