By August 22, 2022
Working on messy books can feel like trying to untangle a knot. If you’ve ever had a pair of wired headphones that got tangled in a pocket or backpack, you know what I’m talking about. It’s hard to figure out where to start working on the knot. And it’s the same with your bookkeeping.
You’d be surprised just how many businesses have messy books. Classification errors, misplaced receipts, duplicate transactions, and mislabeled payments are common problems in messy books. And when it comes to trying to fix the problems and getting your books in order, the mess can seem overwhelming.
There is one simple secret to fixing your books and getting your finances under control again.
The number one reason why there are so many problems in businesses is the failure to take action. It’s okay to feel like you don’t know what to do. It’s also okay to take a little time to look at the problem so you can make the best decision. It’s not good to sit back and never do anything.
If your books are a confusing mess, the best thing to do is to start working on them. The businesses that turn disastrous books into successful growth have one thing in common: they took action. The companies that stay struggling are the ones who wait to do anything until they feel comfortable.
Identify the Problem, Work the Problem
Just like working on a vehicle, the first step of working on your books is to identify the problem or problems. If you aren’t sure what problems are there, just look at the problems your business is facing. Are your bills getting paid on time consistently? Is your account balancing correctly without a lot of time-consuming corrections? Do you have the money in your bank account that you should?
Answering questions like these will give you a good idea of whether your business is functioning correctly or not. If not then you trace the problem back to its source. From there you can begin to address the problem.
But if you don’t know what to fix or where to start working the problem without making it worse, you may want to get help. Getting help is not a sign of weakness or failure. It means you are wise enough to know that you are out of your depth and willing to prioritize your business’ success over your feelings. It shows that you have good character and we all want to have good character.