[Video] Know Your Numbers
MICHELLE SMALENBERGER, CFP ®
Several of our clients are also business owners. We’ve found that one area that doesn’t get all the attention it should is their bookkeeping, or staying on top of the numbers throughout the year.
What are some areas you should focus on while getting your books up to speed?
- Get all of your bank statements or credit card statements together
- Get everything entered now while you have time before year-end
Reports you want to run so you can see the state of your business are:
- Profit and Loss: Income and Expenses
- Balance Sheet: What you Own and what you Owe
- General Ledger: This simply shows all the transactions happening in each account
The benefit of doing this throughout the year is that you can track your progress so you know if something needs to change in the middle of the year rather than waiting until the end of the year. Secondly, if you keep up with these items during the year you are entering transactions while they are fresh in your mind. If you wait until the end of the year to do them all at once you may forget something that was important to remember.
As you look back at your reports generated by keeping up along the way you can look back over a shorter period of time to analyze what has happened. At the end of the year life can be busy just with holidays or year-end busy-ness so it’s much more hectic and stressful to fit everything in. And you can get help keeping your books up to date for a very reasonable amount.
Wondering how this affects your investments? Schedule a call with Michelle and Steve to discuss your portfolio today.
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