Here’s a hard truth from the US Small Business Administration: half of all new small businesses fail within the first five years, and the number one cause of failure is financial mismanagement. Tough to hear, but as a new business owner or solopreneur, you need to be aware of the critical role bookkeeping plays in successful businesses. That's why when we hear someone ask, "Does my small business need bookkeeping?", the answer is an emphatic "YES!" Here are a few reasons bookkeeping matters...
The earlier the better. Many owners will try to sort out the information themselves and then have a bumpy ride when it comes time to transition. A good compromise is to consult with an accounting professional when the business is started and then perhaps touch base periodically, such as once a quarter. Ask for a quote or pricing, and fit in some sort of periodic meeting into your budget. Errors tend to continue until caught at year end or the next time a professional sees the books. Books that are set up correctly in the beginning can be a strong tool for measurement and growth. Books measure the pulse of a business, and good bookkeeping expands past basic cash expenses.
Additionally, most accountants and bookkeepers are happy to answer a few questions, and they enjoy being able to see a business grow and for clients to be successful. After all, the basement startup today could be their biggest client tomorrow.