Business

How to Communicate With Your Bookkeeping

Does the thought of doing the bookwork send you into a frenzy? Do you find anything to do other than get your finances in order? You may be missing some great communication with your books, which could ultimately guide you to success in your business and your personal life.

Now, this may sound a bit bizarre communicating with your books, yet so many things are communicating a message to you. You see I recently took a bookkeeping course and then QuickBooks so that I could manage my finances easier. It also deals with the repetition of forms and statements saving even more time.

I realized how bookkeeping is just another form of communication. Your books tell you, on so many levels how your business is doing.

They show:

* What trends are developing

* Where most of your money is coming from

* Who your best customers are

* Where you are spending the most amount of your money

* How much is outgoing (expenses) compared with incoming(sales and revenue)

* Who is getting behind on their payments

* How much interest you’re paying

* Whether you can get that purchase you wanted

In fact, math seems to have little to do with it and with today’s computerized programs. They have taken care of the additions and subtraction for you. You are doing more sorting and compiling than math.

Your books tell you how things have been proceeding or not and assists you at creating long-term plans. You are supplied with the information that allows you to make a more informed decision.

For many people putting aside the math part of numbers and seeing them in a new light helps them to overcome the fear of looking at and dealing with them. When you see them as your friend, it becomes a whole lot easier to work with.

First, let say you have a question. Am I doing well enough to buy a widget for the company? When you have your books in order, they are able to give you a clear picture of how you are doing which gives you the proper information to make a decision.
You can easily put the information into a bar or graph if you are a visual person. This also gives you the data needed right at your fingertips to take to a bank for a loan or line of credit.

Some people have said it is hard to remember what all goes on a financial statement. And lists just shut them down.

I find it easier to have a picture in my head and change things into metaphors or something that I can visualize.

For example:

A financial statement gives you a clear view of how you are doing.
And on the financial statement is your:

Capital
Liabilities
Expenses
Assets
Revenue

This helps me to visualize and therefore remember what needs to be included. So the better you can communicate the details to yourself, the better the numbers will communicate how you are doing to make an informed decision.

 

 

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