If you are like most small business owners, you are driven to see your small business succeed. Success is defined by a lot of different metrics, increased sales, profit, market share, etc. What do all these metrics have in common? They all need to be measured and tracked.
Darren Hardy in his book “The Compound Effect”, states that his go to tool whenever he needs to solve a problem in his life is to track the thing he wants to fix. Think about it, how can you become better at something if you do not track what you want to improve? How can you grow sales, increase profit, or your customer base, etc. if you do not measure your current state and track your future results while trying to find the thing that you need to change to make those results happen?
Athletes track their progress in their workouts. They track their times, pounds lifted, distance, etc. They chart this data to see trends as they try different training techniques, changes in diets and rest patterns. Do serious athletes do this by themselves? No, they have a coach. The coach is the person who takes care of the tracking while the athlete spends time on exerting the maximum effort. The coach also is an objective observer and offers solutions or insight to assist the athlete accomplish their goals.
Accountants are that small business coach. Accountants have the tools to track your business performance. Yes, you could track your own business performance, but is that a good use of your time? I challenge you to take your annual profit or sales number, divide by 2,000. Now take that result and multiply it by the number of hours you spend doing payroll, filing payroll reports, reconciling your checkbook, entering transactions into your computer. That result is the amount of lost sales or profit that you have incurred trying to be an accountant. This ignores the impact of mistakes that you are not aware of that may result in penalties, fines or lost savings.
Accountants are the coach that can be that objective observer and offer you insights to assist you grow your business. At Maxwell CPA we specialize in small business accounting services. Let us be your coach.