The Secret to a Successful Startup? Focus on Accurate Financial Records
Source: Entrepreneur | Repost QBScott 10/12/2022 –
Studies show that many startups are not handling the financial side of business correctly. This is a big mistake that can hinder growth.
You might not be very organized with your financial records during the beginning stage of your business or side hustle. Less than half of small business owners monitor cash flow, and 65 percent of entrepreneurs who fail say they mismanaged their finances.
The mismanagement may be because all income and expenses go in and out of your personal account. Or both personal expenses and business expenses come and go from the same bank account. Because of this, you might not know what your revenue is or what expenses are due in the next few months.
The situation is similar among self-employed individuals (freelancers, people in the side gig industry), who “tend to not be engaged in financial practices that improve their long-term financial health.”
This is a big mistake. What gets measured gets improved. Likewise, what doesn’t get measured doesn’t improve.
Author: Scott Meister, CPA
I help small businesses, accountants, bookkeepers, office managers, and business owners with their accounting needs. I’ve used QuickBooks since 2002 and train folks on how to use it efficiently. I create high-quality video training tutorials for QuickBooks and post them on QBScott.com.
Certifications include: Certified Public Accountant (CPA) | Certified Bookkeeper (CB) | Advanced Certified ProAdvisor for QuickBooks Desktop | Advanced Certified ProAdvisor for QuickBooks Online | Certified ProAdvisor for QuickBooks Enterprise | Certified ProAdvisor for QuickBooks Point Of Sale