A business that doesn’t pay dedicated attention to bookkeeping is like sailor trying to navigate a ship without a compass. Small business owners often believe that their passion and creativity can sustain a business, but these qualities alone can only take you so far. In order to truly succeed, one most know where the business is coming from, where it is along the way and where it is headed financially. Financial management might not be the most fun aspect of being a business owner, but knowing your numbers gives you the raw data for creating solid financial forecasts. When a small business owner can forecast where the enterprise is headed, it can get there a lot faster, or change course if need be.
As founder and CEO John Trefry explains, 4WT Media is a multifaceted production company that works with brands and advertisers to deliver high impact video content. What makes them unique in their market is the fact that they generate content from strategy and production all the way to distribution and reporting. The company’s project-centric reporting approach serves not only their clients, but also themselves, as a bookkeeper reconciles their books once a month. Additionally, an accountant manages their end-of-year tax planning and their tax season filings, all in a coordinated effort to scale the business. By paying close attention to each project’s performance, John and his team are building the company one successful project at a time.
If you don’t already have a CPA or accounting software to help guide and organize your money, then you’re operating at a serious disadvantage. Being able to track and project expenses and revenue is so important that John cites his working relationship with his bookkeeper as essential to the business’ success. The more attentive you are with managing your finances, the more successful you will be as a result.