Unless you are an accountant or a fan of working with numbers, bookkeeping is probably not your favourite task. But adopting some good habits early can help you avoid costly errors when it comes to record keeping.
You probably keep a lot of the financial details of your business in your head: which supplier you need to pay, which customers are outstanding, etc. It’s understandable to do it this way, you won’t need to learn a new software, there is no danger of a system crash that loses all your data, and you can tweak your budget as often as you need without sitting down at a desk.
However, when you don’t have a system and processes in place, unpleasant surprises can pop-up, goals can be missed and important paperwork forgotten. Getting a better handle on your money can help you to make and keep long-term goals, smooth out the seasonal ups and downs of your cash flow and even improve your profits. It can also help you to stay out of trouble with the Canada Revenue Agency.