According to a pre-pandemic report by the U.S. Small Business Administration, only about a half of all small businesses make it to their fifth year of operations and only about a third survive for 10 years or longer. As you’ve probably experienced first hand, the events of 2020 and beyond have heaped even more challenges onto small business owners’ plates. Pandemic aside though, what are the main reasons a small business fails?
- Running out of money. Many small business owners are aware of how much money they need to run their business on a daily basis but are unclear on how much revenue their business generates or how much revenue is needed to keep their business afloat long-term.
- Poor management. A lack of experience managing a business, an unwillingness to delegate management tasks, or a business plan that isn’t well defined can lead to big problems once a business is up and running.
- Failed marketing attempts. Marketing attempts gone awry or a lack of marketing in general can keep a business from flourishing.
If you’ve faced any of these challenges, don’t feel discouraged – you aren’t alone and your business isn’t doomed to failure. However, you may need to accept a little outside virtual bookkeeping help to overcome these hurdles on your way to building a thriving business here in Vermont or elsewhere.
Virtual Bookkeeping Can Help You Build a Healthy Business
Virtual bookkeeping is the ideal solution to many of the problems that cause small businesses to fail in the long run. Here’s how:
- Virtual bookkeeping will show you exactly where you stand financially. Virtual bookkeeping allows you to stay focused on the aspects of your business that are important to you, while still keeping your finances completely under control. Virtual bookkeepers use software you can access on your smartphone or computer to keep you up to date on your income and expenses. They will also furnish you with easy to understand, itemized monthly, quarterly, and annual reports so you know exactly how much revenue your company is generating.
- Virtual bookkeeping can help you better understand and manage your business. A good virtual bookkeeper gets past the technical jargon and can clearly explain to you whether or not your business is financially sound. They can point out problem areas you may not be aware of. In addition, a virtual bookkeeper will make sure you understand state and federal taxation laws and take advantage of all tax breaks available to your company. All of this information can help you make wise decisions for your business, adjust and refine your business plan, and better manage business finances.
- Virtual bookkeeping can help you hone your marketing efforts. When you know how much revenue your business generates, it’s much easier to decide how much money you can set aside for marketing. With a clear figure in mind, you can hire professional marketers with confidence or allow capable employees to invest time into marketing endeavors as you see fit.
Running a small business is no easy task but, for most, it’s incredibly rewarding and worth the effort. With virtual bookkeeping, you can build the business of your dreams while avoiding the all too common pitfalls that cause so many businesses to fail early on. Staying completely clear about where you stand financially with the aid of a virtual bookkeeper can help you make sound business decisions that will keep your business alive and flourishing for years to come.
Get Help Bookkeeping in Vermont
Creative Solutions is an affordable way to handle bookkeeping in Vermont without hiring a full time, in-house accountant. Using modern computing systems and QuickBooksOnline software, I offer virtual bookkeeping services to small businesses and entrepreneurs as a secure and precise accounting solution.
Contact me today to discuss how I can help your Vermont small business stay financially healthy and become an established fixture in the local community you love.