top of page
Pierre Pinkerton

The Underrated Power of Bookkeeping

As the October 15th tax deadline approaches, I've been contemplating an idea that's been brewing for a while—a brief webinar on the number one way to reduce your business tax bill. With the year drawing to a close and the page about to turn to 2025, it feels like the perfect time to delve into this topic.


Let's make bookkeeping great again.
Bookkeeping is a major pillar for your small business.

Just the other day, I spoke with a small business owner eager to get his taxes completed. We couldn't dive deep into the conversation because his bookkeeping wasn't up to date. And here's the spoiler: the missing link—the number one way to legally minimize your business tax bill—is meticulous bookkeeping.


Now, I get it. Bookkeeping can be as exciting as watching paint dry, unless you're someone who loves numbers and accounting. Most small business owners don't see the purpose or value-add of bookkeeping. But let me tell you, it's one of the major pillars of operating a sustainable small business and a key driver for growing positive cash flow.


---


**Why Bookkeeping Doesn't Get the Shine It Deserves**


The reason bookkeeping often gets overlooked stems from a general dislike of numbers and math. Many of us are creative types, drawn to the qualitative aspects of life that don't involve spreadsheets and ledgers. Over the years, I've yet to meet a small business owner who truly enjoys doing their own books. Most handle it out of necessity or simply to avoid paying someone else.



When I work with small business owners—whether it's on financing packages, tax returns, or CFO advisory engagements—my anxiety levels spike if they don't take bookkeeping seriously. Relying solely on bank statements as your bookkeeping method? That's a HUGE RED FLAG! Especially if your business is gaining traction and generating solid revenue. At that point, not having at least a part-time bookkeeper is, frankly, neglectful.


**Don't Fall for the DIY Bookkeeping Trap**


It's tempting to think you can manage your own bookkeeping. I'll concede that if your annual revenue is under $100,000, you might get away with it. But be warned—you'll likely miss out on allowable expenses that could significantly reduce your tax bill. Why is this? Quite simply because you're not a bookkeeper... **YOU'RE A BUSINESS OWNER!**


I practically shout it from the rooftops these days: bookkeeping is NOT the best use of your time. It's immensely valuable, but it's not where you'll get the best return on your investment of time and energy. Your focus should be on steering the ship, not swabbing the decks.



---


**The Opportunity Cost of Doing It All**


Every moment you spend on bookkeeping is a moment not spent on strategic growth, product development, or customer engagement. It's the classic case of being penny-wise and pound-foolish. By trying to save money on bookkeeping, you might be missing out on opportunities to make even more money elsewhere.


Moreover, professional bookkeepers are trained to spot deductions and credits you might overlook. They're up-to-date on the latest tax laws and regulations, ensuring you're compliant while maximizing your savings. In essence, a good bookkeeper can pay for themselves through the value they add.


**Breaking Bad Habits Before They Start**


If you're just starting out or still in the early stages of your business, now is the time to establish good habits. Don't fall into the trap of thinking you can juggle it all. **Hire a part-time bookkeeper and focus on the strategic growth of your business. You won't regret it.**


---


**Embrace the Power of Delegation**


Letting go of tasks can be challenging, especially when it's something as critical as your finances. But delegation is a sign of growth, not weakness. It allows you to channel your energy into areas where you can make the most impact.


Think of it this way: you wouldn't perform your own dental work or represent yourself in court (unless you're a dentist or a lawyer). So why handle your own bookkeeping if it's not your area of expertise?



**Take Action Today**


As we inch closer to the tax deadline and prepare to welcome a new year, consider making a change that could benefit your business immensely. Reduce your time spent on bookkeeping and hand it off to someone else. Free yourself to do what you do best—growing your business.


---


**Final Thoughts**


Bookkeeping might not be glamorous, but it's the backbone of a healthy business. It's the unsung hero that keeps everything running smoothly behind the scenes. By acknowledging its importance and entrusting it to a professional, you're setting your business up for success.


So, take this as an encouragement. If you're currently doing your own bookkeeping, consider this your sign to make a change. **You won't regret it.**


Remember, successful entrepreneurship isn't about doing everything yourself; it's about making smart decisions that propel your business forward. And sometimes, the smartest decision is to let go of the reins in certain areas.


---



Comments


bottom of page