Is it really important to have my business’s books in order?
If you aren’t sure except for the fact it has to be done for taxes, ask yourself if you can answer these questions below about your business without your financials being up to date.
If you cannot answer these questions, then decide if you think you need to know these things. If you do not, that’s fine, no need to have an accounting system in place.
* Is your business making any money?
* Are your products the right ones?
* Are you pricing your products so that you are not cheating yourself out of a reasonable return while still remaining competitive?
* Is your gross margin robust enough to run the business?
* Do you know what your true direct costs are?
* Do you know if your marketing efforts are paying off?
If you can’t answer these questions, it’s time to reconsider your approach!
The ONLY way to answer these questions is to have an accounting system in place!
Anna Hill is the founder of Accounting We Will Go, a firm that provides accounting and bookkeeping services along with training for Amazon sellers.