I’m not going to get into a philosophical conversation about what enough means, and I’m clear this is one reason, and not the only reason, though it’s probably a big part.
Do you know what financial planning and analysis means? It sounds pretty straightforward, right? In a bigger company, it’s whoever is responsible for evaluating the forward financial progress of the company and suggesting or making changes to maximize efficiency while remaining in line with the company’s vision. You probably don’t have one of these departments, most small businesses don’t.
You likely have one person who is responsible for all of these things on a part-time basis, maybe even just a few hours a month. But whoever that person is, whether they are your bookkeeper, the office manager, your spouse, or you, you cannot afford to ignore this point.
The obvious requirement is that your financial data is correct that you are using to analyze and predict. this is why proper bookkeeping is crucial for the success of most small businesses.
Unfortunately there are a much smaller number of qualified bookkeepers then there are people who are currently in that role. Presumably your business is one of the most important things in your life, who is watching it for you?￼￼￼￼￼￼