I have seen several businesses fail over the last few years. Despite having an accounting system available to them, a common theme was not keeping their records up to date. Not all supplier invoices were being entered when they were received and approved and customer invoices were still being created in Word or Excel. Transactions were only created in the system when there was a bank entry, and the bank reconciliation was only completed in time to submit a GST return.
The phrase ‘knowledge is power’ is still very relevant. The power to make accurate decisions, the power to know when something is wrong, the power to ensure your business is profitable.
Do not underestimate the need to get the books done. Know how much you have to pay your suppliers this week, know how many invoices you need to send, and know what your bank balance is going to be before you get your bank statement in the mail.
If you are running a small business and are still staying up late processing paperwork, get some help. Employ an accounts person, hire a bookkeeper, get a temp in to help you catch up. You will recoup the costs by having financial information that is up to date that provides you with the knowledge you need to run your business successfully.