The best thing about running your own business is the freedom and excitement to go out, develop your ideas, push forward and grow. The fun is about moving ahead, looking forward and trying to achieve ever more.
The boring part is keeping your accounts up to date… Boring but business accounts and good records are sadly an essential part of any small business. Understanding accountancy is not required, but a basic grasp is needed.
So let’s look at some basic things here –
- Research shows that business that fail to keep proper records fail. Poor accounts or accountancy by the business (not your accountant) is one of the key reasons small businesses fail
- Sometimes not keeping records can be illegal! Think about regulation, reporting dates, account filing dates etc
What you may not know is that Lime Consultancy’s director, David Farmer, is also a qualified driving instructor, so let’s use this analogy –
- Drive your car along a motorway
- Come off at your home junction
- Now (hypothetically, because ‘don’t do this at home’) cover the dashboard so you cannot see the dials
- Drive at the new, lower speed limit
Now ask yourself this. How fast are you going?
You will not know exactly, you may have an idea, but not with enough confidence to pass that speed camera van without applying your brakes first.
Your business is no different. If you cannot see the dashboard then you don’t know what is going on, not really.
So, with this in mind we would encourage you to keep good records, keep them up to date, and USE them to guide your business forward.
We cannot stop record keeping being boring, but we can show you it is worthwhile.
If you have any comments then please add them above or contact us via the website here.