Bookkeeping Is Like Baking A Cake, Here’s The Recipe
Updated: Oct 12, 2021
Bookkeeping is like baking a cake. And unfortunately, we see lots of burnt cakes! The truth is that
There is no successful business owner who doesn’t know and use their numbers.
Here’s the recipe:
Use an accounting software like Xero (and expense AI like receipt-bank or hubdoc)
Use a business bank account solely for business purposes (do not mix business and personal, do not treat your business bank account like a personal ATM)
Keep your accounting records up to date & accurate on a daily or weekly basis
Do not overdraw money from the business (draw less than the cash profit minus assets purchased & loan repayments, in wages or drawings)
Reserve money for ATO, supplier & employee obligations (including employee leave, a hidden devil)
Up to date, accurate accounting records is what we call Numbers 101 and this is the first step in our 5 step method on how to use your numbers to get cashed up, optimise your profit & build your dream business.
You can read about each step here:
Up to date & accurate bookkeeping is like the slab of your house – you can’t build a solid house without a slab. And you can’t build a solid business without Numbers 101 being sorted.
If you’re behind on the books then your number 1 job is to bring them up to date.
Because this is the first step to get cashed up, optimise your profit & build your dream business.
We see the consequences of ignoring Numbers 101 first hand. They are
Business & personal bankruptcies
Personal stress, the worst of them all
Your numbers are the foundation upon which everything else is built.
That’s why all Top CPA Accountants list Numbers 101 as Pillar 1 for success.
I’ve had 2 clients phone me in recent times, after getting their numbers 101 sorted to say to me: “Jeannie, we would have shut the doors without you.”
Often, business owners are avoiding the numbers because they think that focusing on making sales is the most important thing. And that more sales will = more profit, but that’s just not true. Trust me now and believe me later, more sales = more sales, not more profit. More profit comes from smart business and that starts with the numbers.
You can’t improve what you don’t measure.
And if your bookkeeping is behind, well, you’re flying blind and you can’t measure anything.
Now, before I go on I want to tell you that when it comes to Numbers 101, I don’t sugarcoat things. I’m going to tell it like it is because I don’t want you to be another business failure statistic and another stressed business owner who got it all wrong. Ok?
Numbers 101 is the first thing you need to get sorted out if you’re going to succeed in business.
No business coach should even work with you until your numbers are sorted out.
In accounting circles we’d call that “negligence”. How can you measure anything without the numbers? You can’t. You’re flying blind.
So what should you do if you haven’t yet mastered Numbers 101?
Ok, I’m so passionate about Numbers 101 & so I’m excited to help you. But before I tell you what to do, I want you to promise me that rather than getting overwhelmed, you’ll remember that help is available.
The thing to do now is to print out my top tips and use them as an action plan.
Or, if you’d like to talk, book a free call with me. I’ve been specializing in helping clients get Numbers 101 sorted for over a decade & I’d be happy to give you some free advice or help you too. Because what we find is that once we help our clients get Numbers 101 sorted then it’s like a springboard for success.
We can then start working with them in a way that translates to a 10x plus return on their investment with the ultimate goal of pulling more time, money & freedom out of their business.
And here are 3 cool tools to help you pull more time, money & freedom out of your business
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