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- Think You’re Profitable? Prove It.
Think You’re Profitable? Prove It.
Many business owners treat bookkeeping like a chore to check off, something the accountant needs at tax time. But the truth is, bookkeeping isn’t just busywork. Without it, you’re driving blind, hoping you’re heading in the right direction. I totally understand bookkeeping isn’t sexy at all when it comes to business or growing, but it has to take place.
Three simple bookkeeping habits I’m listing below can completely change how you see and run your business: reconciling, coding, and analyzing your statements every single month. Take time to do this in Q4 if you aren’t currently analyzing your business position…
1. Reconciling Accounts
Reconciliation means comparing your bank and credit card statements with your books to make sure every transaction matches. It may sound tedious, but it’s the foundation of accurate records. You can automate a ton of this too.
Ensures your balances are correct.
Catches errors, fraud, or double charges before they grow.
Gives you confidence that the numbers you’re basing decisions on are accurate.
2. Coding Transactions
Coding is the process of assigning each transaction to the right category/GL account — like rent, marketing, supplies, or revenue streams. When done consistently, it turns a pile of data into a clear financial story.
Shows where your money is actually going.
Helps you spot waste, overspending, or underfunded areas.
Creates consistency so financial reports mean something month to month.
3. Analyzing Statements
Once your books are reconciled and transactions are coded, you can step back and analyze. This means reviewing your P&L, balance sheet, and cash flow statements to understand how the business is really performing.
Reveals trends in revenue, expenses, and profitability.
Shows whether growth is sustainable or masking deeper issues.
Provides insight so you can adjust strategy, control costs, or invest confidently.
Bookkeeping done monthly isn’t just about compliance…it’s about clarity. It helps you answer critical questions: Are we profitable? Do we have enough cash? Can we afford to grow? If you’re only checking in once a quarter or once a year, you’re reacting late instead of steering proactively.
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NEW FOR 2025!
I have a high focus helping other vets out there and want you all to succeed, so I created this Skool group below called the Profit Platoon. Would love to have you there!
Contact me if you’d like to network or partner together. I’d love to chat with you more about the services I offer on the side through Guernsey Consulting. If you do not know, I work full time in Treasury Management and do consulting on the side. Would love to chat or network with you about it.
Some of those services are listed below that we can help you with!
What information would help you, your business, or team out in the coming weeks? |
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