It is important to have clean accounting records as a small businesses so that you could present financial statements to potential investors.
The reason for this is because I usually do not hear from business owners until they have really messed up their accounting system or they don’t have one and need me to create one. I can’t really say that it is a particular type of business that does this because I have helped various types of organizations and businesses.
Some of the types of businesses that I have assisted are churches, nonprofit organizations, retail stores, bakeries, daycare, construction and service types of businesses. Cleaning up financials or creating an accounting system takes a lot of work and patience. Bookkeeping or accounting can be a challenge but you have to have a passion for it to be successful. There is a since of fulfillment once you have a clean set of books that your client can rely on.
Steps that I take before cleaning up financials or an accounting systems are as follows:
- Ask the client information about their business in order to understand they type of business and structure. The use of a generic questionnaire will help to make sure you ask the most important questions.
- Review their accounting system and/or financial statements for errors that stick out
- Determine what needs to be done and how long so that you can quote the cost it would take to cleanup the client’s books
- Depending on the time frame to complete the job, I would give the client an itemized list of what I would be doing
Does this sound familiar?