There is no substitute for a good bookkeeper. When working with your bookkeeper, make sure you communicate what measurements you need to run the business. Financial management is more than just counting your expenses and knowing what is in the account. When you are designing your accounting process and how to structure your book, keep a few things in mind:
- What will success look like?
- What key ratios do I need to make sure my expenses are reasonable for my revenue?
- Are there different services or products that I need to measure and consider which is my most profitable?
- What measurements do my employees need to see that will tell them when they are successful?
This is only the beginning of the questions you need to ask. If your bookkeeper is not asking these questions from the beginning – get a different bookkeeper.