May 12, 2025

From Chaos to Clarity: How Good Bookkeeping Empowers Your Business

If you’re reading this, you understand the complexities of running a business! Purchasing inventory, paying employees, marketing to new customers, and, of course, closing sales. These are all essential to any profitable enterprise. But amidst all these necessities, owners often overlook one crucial aspect of any successful and sustainable business: Bookkeeping. 

Bookkeeping provides a clear picture of what is happening in your business. Are you overspending in one area and underinvesting in another? Do you have the financial data to obtain a loan to pursue that promising opportunity? Do you truly know and understand your financial position? Routinely keeping your business’s books up to date helps answer these fundamental questions as you grow your business. So, what exactly is bookkeeping? 

There are two key functions for bookkeeping:

  1. “Day-to-day” operations bookkeeping includes routine tasks such as invoicing customers, paying bills, and making deposits. While some of these activities may not necessarily be done daily, they do play an important role in making sure everyone gets paid timely.
  2. "Month-end-close” bookkeeping consists of running customer statements, reconciling various bank balances, loans, or tax liability accounts, filing timely tax reports, and running financial statements. The goal of month end bookkeeping is to tie out all accounts at the end of the month and verify records are accurate.

Proper bookkeeping ensures your business records align with your bank accounts. It provides a snapshot of your business's financial health and gives you clear documentation for the bank, your investors, the taxman, and reliable data to inform your business strategy. 

The pressing daily demands of running a business mean it’s easy to neglect keeping your books up to date. Days turn to weeks, then months, and soon it’s grown to a daunting task to catch up.

At Welgaard CPA & Advisors, we understand that life sometimes gets in the way. If you have been struggling to keep your books up to date and would like a partner to stay on top of it, please contact us. We’re here to keep you on top of your finances so you can focus on what truly matters- growing your business. Reach out today, and let us help you stay connected to the pulse of your business.