Business owners largely see bookkeeping as a data entry job. But there is a huge gap in this way of thinking versus what bookkeeping actually is and what it can do for a business.
Bookkeeping is much more than simply hiring someone to enter data as quickly and cheaply as possible. It is about creating processes and reporting structures that a business can then use to streamline its operations and create proper governance.
To create proper processes within the books does not require additional software or tools – it can all be done within a company’s existing reporting system. All that is needed is to hire someone who knows how to properly handle the books and knows how to create the processes that meet a business’s needs rather than hiring someone who simply shows up and inputs data.
Creating good governance is critical for every organization. A small business may see it as unnecessary because it appears to be easier to simply “just do everything yourself.” But proper bookkeeping creates the processes needed to properly govern any sized business, leaving a business owner more time to focus on growing the business and less time doing busy work.
For example, with proper bookkeeping, a small private college can set up a process that issues reports upon student graduation to ensure that every student has paid their fees in full. Without this process and this report, someone must manually remember to check the fees paid data line against the graduating students data line – tedious and unnecessary work that leaves a lot of room for error.
By doing your books right, they will provide better reports – and with those reports you can build better processes into your business. And with better processes you’ll create a better, more successful business.