Why ignoring your bookkeeping is keeping you from six-figures

Have you set an intention for your business? In my post on Monday, I shared that I was able to hear Oprah speak and my biggest takeaway was the importance of setting an intention in business.

What is your intention in business? Often times I hear it is to make "a lot of money". Well, we all want a lot of money. But, a lot of money is relative and very subjective. 

If you want to reach your financial goals in business, there are three steps you must take.

  1. Start with getting specific about your money goals. Set an amount and choose a date that you intend on reaching your goal.

  2. Write down your goals and review it twice daily. As soon as you get up in the morning and right before you go to bed. Throughout the day, keep it near your work area to serve as a constant reminder as you engage with prospective, and current, clients.

  3. Track your income everyday until you reach your goal. This is in addition to your weekly bookkeeping date. Every day, track how much money you asked for (i.e. proposals sent out) and how much money you earned. The easiest way to do this is to use a bookkeeping program, like Xero.

So, what does this have to do with outsourcing your bookkeeping and it keeping you from six-figures? 

If I earned a dime for the number of business owners that tell me, "I don't want to learn bookkeping" I just want to hand it over to a professional, I would be a very rich woman.

While I fully agree that working with a financial professional is a great idea for your business growth, it is an even better idea to have an understanding of your business finances.

Financial empowerment begins with literacy. You need to understand your money in order to reach your financial goals. Period.

If your business is not earning at least six figures in revenue, you need to be doing your own bookkeeping. 


Why?

Because as a business owner, you need to get a handle on how your cash flows. You need to know how to label your expenses. And you need to keep an eye on your income goals and if you are hitting them.

Far too often, especially as women, we hand over the financial duties to someone else. 

What you focus on grows and if you're not focusing on your business' financial health, it will not improve. Either your sales will not increase. Or if they do, your profit margins will diminish.

70% of women-owned businesses earn $54,000 per year. That's in revenue. Compared to $75,000 earned by our male counterparts. I firmly believe this is due to our resistance to tracking our books.

With technology, bookkkeeping is easier than ever. And I know you're super smart, because you wouldn't have started a business otherwise, and can more than handle your books.


In order to break through six figures, you must stay on top of books. You can do it. I believe in you.

Take action now! Scroll back up to the top and answer the three questions. Let me know in the comments when you are done.

Cheers,

Danetha

Not sure what it means to "do your books"? 

Click here for information about my Bookkeeping 101 course

Danetha Doe (@danethadoe) is a business strategist and selected as one of the Top 40 under 40 accounting professionals in 2015 by CPA Practice Advisor.