Each morning when I arrive at Harmoney, I see my reflection in our office plant.
Before I leave for the day, I pour whatever water I helped myself to during the day but did not consume, on the plant’s roots. When that happens daily, the plant is green and lush and occasionally pops a beautiful white bloom or two. Lovely.
Then there’s busy season. From my arrival to my departure, I’m rarely out of my seat. Reduced trips to the water bubbler (“water cooler” for those not in New England) means reduced or eliminated nightly feedings for the plant. When a droopy plant with discolored and shriveled leaves greets me, I know that we both have issues. The plant’s withered appearance reminds me that I’ve been depriving us both of the attention and water we both need.
Let’s keep on the healthy plant theme by thinking of your business’s books as an office plant. When you look at your financial reports, do you see a lush or a droopy bottom line? Keep looking, why is it lush (do more of that!), why is it droopy (find the root cause).
At the ground level, a company’s financials need regular attention and when that attention is not paid, it’s not only you who sees it. It’s also the bank, investors, and stakeholders. Not just this year, either. A droopy bottom line shows on the historical financials.
What does regular attention look like? It’s monthly transaction coding and account reconciliation, reviewing accounts receivable and accounts payable, keeping up with the recording of your fixed assets (did you buy or sell a piece of equipment recently), and updating inventory figures. To keep weeds from growing in your books, clear up any outstanding questions before they take root.
You don’t need to be a farmer or a horticulturalist to keep your books looking good.
Not sure how to review your books – reach out to me to schedule a bookkeeping discovery call so we can chat.
Debbie Vogt
January 15, 2024