This is a part of a series of posts written by entrepreneurs of the Fall 2020 Business Accelerator cohort for EforAll Cape Cod.
By Rochelle Broughton, Owner of The Assisted Boss
This week we had two Presenters discuss the importance of Bookkeeping and Insurance. Proper bookkeeping and maintaining cash flow are just as important as having the correct insurance. You need to protect your business with accurate financial data, from accidents and lawsuits, etc.
Businesses of all sizes must complete certain bookkeeping tasks to maintain accurate financial records. Bookkeeping is important because it helps you budget and forecast finances to make informed financial decisions. Many small business owners operate their businesses and never review their financial reports regularly. You should have a good sense of your Profit & Loss Statement and Balance Sheet to make informed decisions.
One of the most important financial decisions a small business can make is to invest in software to manage their financial data. They can do this themselves, hire an employee, or bookkeeper. Maintaining accurate and up-to-date records will allow you to paint a clear picture of how you spend your money.
A lot of small business owners & entrepreneurs often wear more than “one hat” in their operations. Time is limited to manage or operate the parts of the business that bring in revenue. Hiring a bookkeeper whether in-house or outsourced will allow you to focus on your core business needs. Time is precious.
There are many factors that determine the insurance you should have to protect your business. The business you operate, how you operate (online, brick & mortar, or travel-based), and having employees or subcontractors will affect the levels and coverage you need.
Having insurance based on your specific business operations will cover you for the unexpected. Without business insurance, business owners may have to pay out-of-pocket for costly damages and legal claims. Depending on the scenario, this could be financially devastating. Many states also require businesses to carry specific insurance. Discuss your business operations with a trusted insurance broker. Do not be afraid to get multiple quotes or ask questions.
You need to be the Boss of your business. Spend time to initially get your finances and insurance needs managed. Then use your precious time to focus on your trade and growing your business.
