Welcome to our new 5-part series on how you are probably losing money if you are not doing regular bookkeeping & reporting within your business. This is part 5 – The Mind Freedom Edition.
What is bookkeeping?
Bookkeeping is essentially the financial record-keeping for your business – done properly, it will tell you everything that’s come in, everything that’s gone out, everyone who owes you, everyone who you owe, how much tax you will need to pay, and the list just goes on.
Reporting without accurate bookkeeping is about as useful as an accountant without a calculator … but – paired with good bookkeeping, checking out your business reports regularly will enable you to plan for the future, see how to scale and when and will stop you from falling into any financial pitfalls.
Now we’ve got that cleared up, let’s get into it…
Part 5 – The Mind Freedom Edition.
I’m really not sure this needs any explaining! But, this would be a really short article otherwise, so here we go!
Would you rather;
- Spend a little time in your day getting up to speed with your figures and putting a little money aside for tax, and then going about your day without having to think about it again?
or
- Wake up in the middle of the night worrying and wondering how much you’re going to owe, and if you’ll have to use the savings that really should be set aside for something else, and just always have this nagging feeling in the back of your mind that you owe somebody something…?
There really is no price for having peace of mind.
And so, whilst leaving the bookkeeping until the last minute is definitely costing you money in other areas, most importantly, it’s costing you your mind freedom. It’s costing your partner their evenings with you being present and connecting. It’s costing your kids having a parent available after school, who knows they can splash out on a treat because they have the peace of mind that the bills are taken care of.
Quite honestly, sometimes the figures will be worrying. They will actually cause some stress. But how much better to find that out quickly, and deal with it promptly, than to have the feeling of future dread looming for months?
Forget about the money – this is about YOU.
Blog Suggestion: The Three Freedoms Business Owners Strive For
The best way to keep up-to-date and accurate is to use accounting software (sorry, but spreadsheets just don’t cut it anymore!), and get clued up on how to understand the data and what it’s telling you.
If having the presence of mind to do what you love with who you love isn’t enough to convince you to keep your records up-to-date, go back and see:
Part 3 – The Business Structure Edition
Part 4 – The Time Freedom Edition
If you’d like to get some training on how to do accurate bookkeeping & reporting for yourself, or you’d like to outsource this to the experts, fill in our Quick Questionnaire and we’ll be more than happy to help you.
For more Tax Tips & advice, check out PPF on YouTube!
