Let’s answer a basic, but SO VERY important question for every. single. small business owner.

What is bookkeeping?

We’ll start with the obligatory, boring, definition. Shockingly, Merriam-Webster only defines a bookkeeper, but lacks a definition for the task of bookkeeping. Bookkeeper: a person who records the accounts or transactions of a business. We can pretty confidently estimate that bookkeeping, then, is the act of recording the accounts or transactions of a business.

….Are you asleep yet?

Glad we have that out of the way. In less sleep-inducing terms, bookkeeping is when you track all of the money coming in to your business, and going out of your business. It’s absolutely necessary to produce any sort of financial performance reports for your business. And it’s a critical part of your business and your success as a business owner. Do you know why?

Because 1 in 5 businesses fail during the first year.
And only half of us make it past year five.

And the thing knocking you off of the map before year five is not your marketing. It’s not your offer. It’s not your prices. It’s not your lack of social media presence.

It’s poor management of your finances. It’s skipping the bookkeeping. Taking your eyes off of the most important ball.

I’m here to tell you that properly tracking your numbers via bookkeeping is imperative for your survival. And because survival doesn’t sound sexy, and it’s not our goal, let’s take it one step further. It’s imperative for your success. For you and your business to thrive so you can build the life of your dreams.

Bookkeeping, aka your simple task of tracking your sales and expenses, is the foundation for running a profit & loss report. It’s your way of knowing if your sales are lacking, or what you’re spending the most money on. It drives your daily, weekly & monthly decisions. It helps you plan for next year, or pivot during this year.

If you’re overwhelmed by the thought of tracking your numbers, start small. Pen and paper even. Write down everything coming in and everything going out. This simple and basic level of awareness will help you, I promise. And when you’re feeling up to it, try popping that information in to a spreadsheet. It’s not about how pretty it is, it’s about you knowing, at any moment, where your business stands.

Happy tracking 🎉
-Jen