Help! My accounts are a mess – where do I start?
American World War II veteran, salesman, and motivational speaker Zig Ziglar was a master of powerful quotes.
But one that sticks out above all else is this:
“The first step in solving a problem is to recognize that it does exist.”
This is a fundamental truth of business; the most successful are often those who are prepared to look inward and identify what’s holding them back. And when they do, they set about resolving that problem before moving forward with greater impetus.
It’s fair to say that being here and reading this means you’ve already accomplished step one; you recognise that there’s a problem with your accounts.
So, what’s the next step in solving this mess?
Tidying up your messy accounts
Rip it up and start again
Chances are the reason your accounts are in such a mess is because you didn’t have a proper accounting and bookkeeping solution implemented from the start. And as the days, weeks, and months went by, that jumble of numbers only grew worse.
Before you go any further with trying to fix any issues surrounding internal processes and workflows, it’s a good idea to move onto a modern cloud accounting system and give yourself a fresh start.
You need a platform from which to build your business, and your accounting system can be just that. Using the right tools, such as Xero, you’ll have access to real-time and accurate financial information, allowing you to make effective business decisions faster than ever before.
Reconcile your accounts regularly
Once you have the correct setup for your business, and you’ve integrated your business bank accounts, you’ll enjoy a clearer picture of the financial health of your company.
But that will only remain the case if you regularly reconcile bank transactions to keep everything accurate and up-to-date. This means carefully categorising your transactions to track the flow of cash into and out of your business.
This of course requires discipline, but with the right systems in place, it can be as simple as clicking a few buttons. A far cry from the mess left by error-strewn spreadsheets and piles of paperwork, we’re sure you’ll agree.
Ask for help
Finally, you don’t need to tackle your messy accounts alone.
In fact, doing so might make matters worse. If you’re unfamiliar with the cloud accounting platforms on the market, or you dive in head first, trying to untangle the mess left from years of financial disorganisation, you could leave your business open to penalties from your country’s tax and revenue service when the year-end rolls around.
That’s why it’s always better to reach out for a helping hand from someone like Stepping Stone.
Contact us today and speak with one of our friendly Xero experts about introducing cloud accounting and bookkeeping to your business.