You’re excited about a new venture opportunity that’s presented itself for your small business; it’s going to be a great new product; it’ll double your company’s worth; it’ll put you on the map in your industry. However, it’s going to need some money thrown at it, which means you’ll need to get a loan, which also means you’ll have to show your financial records to the banking institutions! (Insert sound of a scream or halted record on a turntable here)
That’s right, we’re going to ask you, how accurate and organized are your business finances? This is where a bookkeeper comes in (or hopefully the bookkeeper has been coming in regularly to organize your numbers). Bookkeepers, like us, are worth their weight in the big loans you request (and get, if your financial books are clean) from the institutions.
Often, small business owners want to take care of everything in their business to save money, even the bookkeeping; but the opposite happens – they spend great amounts of time recording and crunching numbers (this takes time away from creating more business). Many are not informed of all the minute business-expense information, and tax regulations and updates, which causes them to make mistakes or not take advantage of all the business claims available in their interest. Also, we’ve seen this happen so many times; they make errors with numbers, misrecord details, and create messy and confusing financial books. For sure, messy and irregular financial books will not serve any owner who wants to get a loan, and unfortunately the stamp on this request will be a “DENIED.”
If you’re sure to need a loan, bring in a bookkeeper to organize your books. Of course, it’s best to keep a bookkeeper on for the length of your company’s life, but for the sake of getting a loan (or being ready for an audit – which is a whole other story), hire an expert to help.