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Bookkeeping. The Anchor To Keep Your Business Afloat
An anchor to keep your business afloat? If you relate that phrase to boating, however, it begins to make sense.
You are out on your boat (if you haven’t got one, just pretend) and you reach a sheltered bay. To keep your boat safe from drifting or being blown ashore and wrecked by an unexpected wind, you drop and set your anchor.
Bookkeeping is the anchor for your business, particularly if you are a sole proprietor of a home-based business. Poor bookkeeping and record-keeping are two of the main reasons businesses fail, particularly one-person businesses. Just as marketing your product and services is important to get money in, bookkeeping is equally important in knowing where the money is going out.
The following are a number of accounting reasons for small business failure.
Not having good bookkeeping or accounting practices
Procrastinating on important daily, weekly, and monthly record-keeping tasks
Overlooking small transactions
Failing to communicate with your accountant
Spending money that is needed for taxes or payroll deductions
