One of the most significant challenges a small business faces is keeping their books balanced and accounting for money coming in and out of the business.
Even for a small operation, the number of receipts and paperwork that comes from bookkeeping is a daunting number. The best thing you can do is turn your books over to an organization with expertise or a dedicated employee. Unfortunately, there’s one caveat associated with that. You have to be able to trust that person or organization.
The reason so many small businesses keep their own books is due to the high-profile reports of fraud and embezzlement. I won’t go doom and gloom on you and tell you that it’s likely that it will happen to you, but no one ever suffered by being overly cautious on this front.
How can you make sure your books are being monitored by the right people?
- You can do it yourself. This will require quite a bit of time and lead to frustration, but there’s no one more trustworthy than you. Consider it if you have a head for numbers and think you can take the time.
- If you’re going to hire an outside organization, vet them carefully. Read reviews, talk to friends who use them and be sure they don’t have a shady history. It’s your money you’ll be trusting to them.
- If you’re going to hire an employee, keep some oversight of the books. Have this employee give you reports. If anything seems fishy, dig for yourself. Again, it’s your money. Be awfully careful with it.
That’s good, common-sense advice for you. How do you manage your books?
Direct Capital is a leading nationwide provider of equipment leasing, business loans, and working capital.*
*Working capital not available in the following states: AK, DE, ND, VT