Plain and Simple: Bright Business Insights Fall 2017 | Page 7

ARE YOU PREPARED TO GROW IN 2018?
Clean Up Your Internal Accounting Now to Avoid Headaches Later
The more you stay on top of your business’s accounting records, the
easier they will be to “clean up” come tax season. Not only that, but the
cleaner and more accurate your records are, the less likely it is that you
will be faced with a surprise bill at the end of the year. But that’s not
the only reason it’s important to keep clean internal accounting records
– especially if your business is growing. Make sure your records are in
tip-top shape so tiny problems don’t snowball as you grow.
Accurate accounting records, well-organized accounts payables and
receivables and timely bank reconciliations will help ensure the future
health of your business and allow you to:
• Manage and pay down debt effectively
• Correctly forecast your business’s growth trajectory
• Pay owners, stakeholders and employees in a timely fashion
• Project tax liability
• Plan and save for the future
Mismanaging records, on the other hand, could have detrimental effects
on your business. In addition to setting yourself up for messy tax filing,
you also run the risk of misallocating your cash – which means you
might not have enough cash on hand when you need it most.
There’s never a dull moment for small business owners. And sometimes This isn’t to say that this kind of set-up never works; but it ultimately
accounting activities get bumped to the end of the list when unexpected depends on the individual and their business. Most of the time,
demands inevitably pop up. however, business owners are simply far too busy running their day-to-
Step Away From The Books
Many business owners take on the responsibility of serving as their
business’s primary accountant, regardless of whether they are actually
trained to take on the role – and they often underestimate the amount
of time needed to manage their business’s books. The result? Your
business is left with weak internal controls, which not only opens you
up for fraudulent activity, it hurts your company’s potential for growth.
day operations that they can’t give their accounting activities the time
and energy needed.
The bottom line is this: if you don’t have timely, accurate accounting
information, if your records appear off in any way, or if you feel
overwhelmed by the current state of your accounting activities, it’s time
to make some changes.
An accountant can help set you on the path to success, and save you
from headaches down the road. Depending on the size and budget of
your business, it might make sense to hire someone internally. If that
doesn’t seem like the right path for your business, you may want to
outsource this function to a CPA firm … which not only takes a lot off
your plate, but you could also see significant savings in outsourcing the
work, compared to hiring a full-time employee.
Begin by consulting with a CPA, or ask around within your professional
by: Kyle Stemple
CPA, CGMA, Principal & Regional
President
122 Fourth St. NW
PO Box 1020
New Philadelphia, OH 44663
[phone]
network for a referral. Regardless of where the help comes from, your
accounting is too important to go by the wayside.