We all know that good bookkeeping practices and organized financial records are an asset come tax time, but in general, bookkeeping serves an even more important purpose… benchmarking.

What is Benchmarking?

Benchmarking is the evaluation of something by comparison to a standard. When evaluating business processes and performance, one would likely use industry standards or a competitor’s practices as a point of comparison.

What is the Bookkeeping/Benchmarking Connection?

You likely have certain production or performance goals for your company. Analyzing how you "measure up" to those those goals (benchmarking) starts with data (from your own books). This can be compared to competitors or an industry standard. Over the years (as you accumulate more data) you will be better able to track progress and milestones that are crucial to goal achievement.

Reach your small business goals with benchmarking! Email David@DEKEbookkeeping.com to learn more.

Most business owners understand the importance of good bookkeeping. We know it helps us better manage company money, and we know that good books can be especially helpful come tax season. We also know that errors can be costly. Whether you do it yourself or seek a professional, it's important to do the job right.

Ensure your books are "good books" by:

Keeping a record of your receipts and invoices in numeric order.
Maintaining consistent and complete business records to document all of your business transactions.
Keeping track of your business account statements, and reconcile your accounts on a regular (preferably monthly) basis.

There is a lot more that can be said about best bookkeeping practices, but the above tips are the most important to remember. If you want to learn more, SCORE, a nonprofit association that promotes the growth and success of small businesses, has some great resources available including the Top 10 Bookkeping Mistakes. This may be a helpful reference for those of you who are evaluating your current bookkeeping system.

Think your business could benefit from professional bookkeeping services? Email David@DEKEbookkeeping.com to learn more.