Having worked as a CPA in public practice for about two decades, I'm constantly shocked to see how many businesses rely on spreadsheets to manage their bookkeeping.
With the introduction of cloud technology, it's easier than it's ever been for a company to manage their finances easily. With Wave offering free accounting to small business owners, it's never been easier for them to stay on top of their finances.
When it comes to managing your business, you'll need the most useful information possible — which means information that's both relevant and reliable. For information to be relevant, it needs to be communicated to you on a timely basis. That's why it's so important not to let your finances slide over the summer!
Here are four reasons to stay on top of your finances this summer:
Better focus on your business
One more task on your to-do list is distracting. When you categorize your transactions on a regular basis, it's one less thing to worry about. This will free you up to focus your energy on running your business.
Monitor your cash flow and finances
Wave imports all the transactions from your business bank account and business credit card account. Instead of logging into your bank account, you can see a more elaborate financial picture by signing into Wave.
Wave can produce a balance sheet for any date and can generate an income statement for any period you choose. If you manage your finances in Wave on a regular basis, this information will help you to make informed decisions more promptly.
Spend less time on bookkeeping
It may seem counterintuitive, but when you keep your finances up to date, you'll spend less time managing them. That's because you may find yourself misclassifying some transactions when trying to quickly sort through a backlog of information, or even forgetting what certain transactions were, making classifying them difficult.
On the other hand, if you are monitoring your finances on a daily or even weekly basis, you'll not only save time, but also be better informed, allowing you to make the right decisions at the right time.
Save on CPA fees
If your bookkeeping is messy, your accountant is going to have to spend more time sorting through your records for tax preparation. This extra time adds money to your bill.
However, if you've done a great job in keeping your records organized, not only will your fees be lower, but your CPA will also be able to add more value to your business by providing the right advice.