Bad Bookkeeping Practices are Linked to Business Failures.

Don’t Let Your Business Become a Statistic!

“Your Bookkeeping Stinks: Why It’s Killing Your Business and Wrecking Your Plans for Retirement” provides critical insight on how to avoid 21 common bookkeeping stinkers!

Sad, but true…

“No experience with bookkeeping or lack of understanding of bookkeeping systems” was a leading cause of failure in business bankruptcy cases studied by the Small Business Administration.1 Bet this describes you, doesn’t it?

I thought it might…

Your business may be at significant risk from bad bookkeeping practices!

In my book, “Your Bookkeeping Stinks: Why It’s Killing Your Business and Wrecking Your Plans for Retirement”, I have compiled a list of 21 bookkeeping “stinkers” and bad bookkeeping practices that can sink your business. How many bookkeeping stinkers are slowly sinking your business?

Here are details on two very common bad bookkeeping practices that have knocked many businesses onto the obituary page:

Bad Bookkeeping Practice #1: Your do-it-yourself bookkeeping software generates bad reports and flawed information.

Let me be the first to say that current versions of small business bookkeeping software such as QuickBooks and Peachtree are absolutely wonderful tools. The features and functionality they contain for the modest prices charged provide a truly remarkable suite of tools and reports to use in managing your business.

Unfortunately, many small business owners rush out to their local big-box retail store, make the purchase, install the CD, and think they are magically turned into bookkeepers. In reality, it simply doesn’t work that way.

“I really could have used you when I first set up our bookkeeping software on my computer!”

J. Davidson

In my QuickBooks consulting practice, I have come across many small business owners’ automated sets of books that have been unmitigated disasters. In the quest to save a few dollars, the business owner has decided to set up his or her bookkeeping system while flying solo. This is usually a huge mistake. The automation just gets them really bad information faster.

Your accounting software can only provide quality feedback and reports if the underlying data is accurate and timely. Some potential sources of trouble:

  • You have bad data funneling in from someone not skilled in bookkeeping.
  • You have bad payroll data being created by someone not skilled in payroll.
  • You have taken some shortcuts in the early days and made some bad decisions in setting up the books.

It doesn’t matter what the underlying reasons are – garbage in leads to garbage out. This causes your critical financial reports to be poorly organized, or even worse – incorrect!

Solutions for Bad Bookkeeping Practice #1:

  • Get professional assistance when setting up your accounting software–the dividends will be enormous during the life of your business. If it’s already been set up, then get a tune-up to ensure it’s been done correctly. The old adage “pay now or really pay more later” applies here – the costs to fix these types of mistakes can bust your budget in a hurry.
  • Don’t let your IT person set up your accounting software system just because he or she “knows computers.” Understanding bits and bytes is in no way the same as understanding debits and credits.
Get Your Copy of 'Your Bookkeeping Stinks' Right Now!

Bad Bookkeeping Practice #2: You have no idea what an Accounts Receivable Aging report is or why it is critical to the success of your business.

Unless your business sells strictly for cash payments (and few do!), you will be forced to extend credit terms to capture customer orders. Naturally, they will ask for payment terms like net 30 days, net 45 days, or even longer!

Consider the implications of granting credit to your customers:

  • Each dollar of credit you extend is a dollar NOT sitting in your bank account allowing you to pay employees, buy inventory, or pay your expenses!
  • A poorly structured program of monitoring customer balances can wreak havoc with your bank account, forcing you to get upside down with YOUR vendors because you can’t pay them on time!

It doesn’t have to be that way!

Your accounting software (you are using accounting software in your business, right?) can painlessly generate an Accounts Receivable Aging report. It will show you these three critical details about your customers:

  • Who owes you
  • How much they owe you
  • How long they have owed you

These details will allow you to apply a laser-like focus on those customers taking longer than they should to pay. You can then call them and “help them find their checkbook.

Solutions for Bad Bookkeeping Practice #2:

  • Create a business policy that documents how and when you will follow-up with those customers who are “a little slow in paying”. Stick to it – otherwise, your customers will stick it to you.
  • Get in the habit of running an Accounts Receivable Aging report on a regular basis (at an absolute minimum of once per month, preferably 2-3 times per month). For any accounts identified as slow-paying, apply the policy created above to get that outstanding cash in your door and out of their bank account.

Remember, each dollar your customers owe you is a dollar that isn’t providing a return to the business.

Get Your Copy of 'Your Bookkeeping Stinks' Right Now!

Okay, So What’s The Cost for my Copy of “Your Bookkeeping Stinks”?

Realize that the insight provided in the book would easily cost you hundreds or even thousands of dollars. In fact if you hired a top consultant like myself to review your bookkeeping system, the charges could be in excess of $1,000.

But I’m not going to charge you anywhere near that amount. In fact, your total investment for tips and insight on avoiding 21 bookkeeping blunders and creating a better bookkeeping system for your business is only $9.95.

So what’s the catch? Why am I practically giving this resource away? Well, it’s really quite simple. I hate to see small businesses fail, and poor bookkeeping systems are one of the leading causes of their demise.

It’s true – I get called into many business situations where the books are simply a disaster. My sincere hope is that the content of the book alerts you to potential problems in your own bookkeeping system and prompts you to take corrective action – before it is too late.

100% Risk-Free Guarantee:

Your satisfaction in purchasing “Your Bookkeeping Stinks! Why It’s Killing Your Business and Wrecking Your Plans for Retirement” is completely guaranteed. In fact, here’s my 100% Better-Than-Risk-Free-Take-it-To-The-Bank Guarantee:

I personally guarantee that if you are unhappy with your purchase within 30 days for any reason, I will completely refund your purchase price. No questions asked.

I can’t make it any fairer than that.

That means you can soak up all the information and tips on how to avoid 21 common bookkeeping blunders with no risk, while you see if they work for you or not. And if they don’t, I honestly want you to ask for your money back.

There is absolutely no risk whatsoever on your part. The burden to deliver is entirely on me. If you don’t see the results of a better bookkeeping system, I’m the loser, not you. Look at it this way — $9.95 is really a painless drop in the bucket compared to the money you are tossing down the toilet with your current ineffective set of books and the incorrect information they are creating!

Make a Wise Investment for Your Business and Invest In Your Copy of…

“Your Bookkeeping Stinks: Why It’s Killing Your Business and Wrecking Your Plans for Retirement”

It’s easy to get started. Just click here to order!

Get Your Copy of 'Your Bookkeeping Stinks' Right Now!

Get ready to improve your business bookkeeping right now!

Scott Gregory, CPA, QuickBooks Expert

About the Author

P.S. I know you are not a bookkeeper, and don’t want to be! That is even more reason for you to avoid 21 common bookkeeping mistakes and get your copy of “Your Bookkeeping Stinks! Why It’s Killing Your Business and Wrecking Your Plans for Retirement” right now!

1 Source: Sullivan, Teresa, Elizabeth Warren, and Jay Westbrook. “Financial Difficulties of Small Businesses and Reasons for Their Failure.” (Washington: SBA Office of Advocacy. 1999).