Be organized and take your year-end statements one step at a time
Just like the T2 corporate tax return you might think that your business’ “Year End Financial Statements” are a one-time task to be completed at the end of every year; however, running a business and fulfilling your legal obligations of keeping records comes with many hurdles. Keeping on top of your financials/ accounting is an essential part of success.
As a small business owner/manager, you are required to be a jack of all trades and in today’s fast paced environment, you can quickly become overwhelmed and lose sight of things. That is why you might consider investing in the services of a bookkeeper or even an accountant to keep track of your financials so you can focus on building and keeping your business a success.
Whether, you have professional help or doing it all yourself, either way you need to keep on top of your financial records – slow and steady wins the race!
To give you a real-life example, when I started running, I didn’t just jump in the deep end and immediately run 10km in 20 minutes killing myself in the attempt. I started off slowly with maybe 500 meters in 5 minutes and as I trained continually building my strength, over time I improved and every run got easier and easier.
Just like that you should take the time yourself or pay someone to organise your financial information every single month, this will save you the frustration of a mad dash at year end. Furthermore, having your books organised and completed monthly will provide you with numerous benefits – just to name a few:
- Allows you access to important business information at any time
- Providing information quickly to third parties (for example lenders or investors, etc.) is vital to your ongoing operations
- Disorganized books can lead to vital relationships being compromised or even terminated altogether
- Peace of mind that your business’ books are ready for any situation
- The tools to focus, determine and implement your short and long-term goals and strategies
As your books and records are the heart of your business’ operations you should keep them in order during the course of the year not just when your financial statements are due. Remember after the race is before the race.