In today’s issue:
I once confessed to a business coach that I was weak on some of the very disciplines I worked to help my clients improve. I’ll never forget his response…
“Even plumbers have leaky pipes”.
I’m reminded of this as I try to help all our clients – and our own company – get the books squared up for year-end.
The sad fact is, I haven’t done a great job keeping up with our books. I mean, our business is pretty simple – provide services, collect checks – so the bookkeeping shouldn’t be a big deal. And catching up with neglected bank postings and reconciliations doesn’t seem like it should be that hard. But here’s the truth…
It’s challenging enough to consistently and accurately record financial events on a daily or weekly basis. It’s really challenging, bordering on impossible, to accurately record events that happened months ago. We even have a snappy quote for how this impacts profits: “The profitability of a financial event is inversely proportional to how long it takes to get the event recorded”. In other words, the longer it takes to get it in the books, the less money you’re gonna make.
If VITAL wants to maximize its profitability, VITAL needs a better bookkeeper! And so, too, do the majority of CI companies we’ve encountered through the years.
Not an Entry Level Position
Trusting your company’s profitability to someone with little or no bookkeeping experience always has the same result. Less profitability. But it goes beyond bookkeeping, beyond a bit of QuickBooks experience. There needs to be someone in the company with a fundamental grasp of accounting basics, who can look at the books and almost immediately know if something got entered correctly or not. And finally, it really helps if the books are being kept under a known management system that clearly defines what’s supposed to happen in the books, when.
We say all this because, as we approach the New Year, it might be a good thing for your company to consider upgrading its bookkeeping skills in 2018. It will take a person, a system, and some accounting fundamentals. Long term, it is a cost-free proposition – better bookkeeping ALWAYS leads to better profits.
Maybe your company has a person. VITAL has a system. And we can offer one-on-one coaching with a QB Pro Advisor to help with the system implementation and accounting fundamentals. You can start for as little as $300. It might end up costing $1000, or $2000. But it will result in tens of thousands in additional profits.
You can get started by clicking here and placing your order for 3 hours of QB support. This will get you set up with our QB Pro and you’ll be on your way to a more profitable 2018.