One of the most boring topics of doing business

free coaching Mar 14, 2018

Welcome to this video, I'm Tom Koster, and today we're going to talk about one of the most boring topics of doing business. And the boring topic is called bookkeeping. And bookkeeping is also one of the most important topics in business, because with bookkeeping you know whether or not you are making a profit, and to be in business is all about making profits.

And in doing bookkeeping, you have two choices, choice one is to have someone else do the books for you and pay that person, and have that person tell you whether or not you are doing a good job. And the other one, my preference, as you may know, is do it yourself. And the reason is that I'm doing my books myself since a few years now, and my wife used to do the books for me, and she did an excellent job, the only challenge was that my wife told me how my business was doing. And what she told me was sometimes in contrast with the feeling I had of how my business was doing.

So the books were actually telling that the business was not doing that well as I thought it would, that's one. Number two is that I find it very challenging that my wife is telling me whether or not my business is doing well, and I'd rather tell myself that information, and tell her and other people I choose to share the information with how my business is doing. And I have to admit that once I started doing the books myself, again, because by profession I was taught to be a bookkeeper when I went to college, and I worked as a bookkeeper for quite a few years early in my career from the late 80's to the beginning of the 90's, so I know what it is to do books. And I also help clients with doing the books. And since I started doing the books myself again, that gave me a lot of confidence. And not only that, it showed me exactly how my profits and losses were doing.

And just this morning I'm teaching my son, Leon, also how to do books. And he's helping me with my bookkeeping. And he has his own business right now, and my suggestion to him, but also to you as part of our community of small business people in digital marketing, in web and IT, my suggestion is you also do your own books. Do not outsource this to someone else. I know it's a very boring job, it's boring myself to do it, but after I've done it, it gives me a lot of satisfaction and completion, because I know the books are done, and I know how my business is doing. I know my profits, I know my losses, I know my costs. And oftentimes when I go through the books, and I go through the credit card statements, and I look at all the invoices I've sent, and I'm looking at all the invoices I've received, I make decisions very quickly.

And my suggestion to you as the same as what I'm doing, I'm doing my books at least every two to three months, at least. And if I have time, I do them sooner. But since I think it's not the most exciting work, I'd rather spend my time with clients, helping clients, than doing the books. But bookkeeping is an essential part of doing business, and my suggestion is you do it yourself too.

That's it for this week, have a great day.

Bye for now.