Profit Soup Podcast

Tips for Better Books

Episode Summary

Entrepreneurs who have accurate financial data and a process for using it make better business decisions, giving them a competitive advantage. Barb Nuss shares tips for keeping accurate accounting records, and explores the importance of having reliable, timely data to manage by the numbers.

Episode Notes

• Accurate financial statements are essential—for IRS compliance, smart decision-making, and future business sales.
• Prevent theft and embezzlement by separating financial duties like cash handling, check-writing, and recordkeeping.
• Documented accounting procedures make it easy for someone to step in if a team member leaves—keeping operations smooth.
• Understand the difference:
  • Cash accounting records money when it's received or spent.
  • Accrual accounting records income and expenses when they’re incurred, giving a clearer financial picture.
• Review your finances monthly, by the 15th of the following month—not just at year-end—to stay proactive and informed.