S2 Episode 3 || Stop Ignoring Your Bookkeeping

Ask your current bookkeeper this critical question — Can you please let me know what I need to do to make sure that when I look at my Xero dashboard, my invoices are correct, my bills are correct, and my reconciliation is no more than seven days? The answer you get will reveal if you should stick with them or if it’s time to equip your business with a better financial team. 

In this episode of Profit First For Tradies, Katie Crismale-Marshall stresses the critical importance of having proper bookkeeping practices in place for financial success. She shares that in her experience working with tradespeople, those struggling financially inevitably have bookkeeping issues, such as unpaid invoices, unknown bills, unreconciled bank transactions, and disconnects between job management systems and accounting software.

Katie explains that, just like a house that requires a strong foundation, your business relies on solid bookkeeping to prevent constant financial headaches. She advises listeners to take a quick assessment of their Xero dashboard to identify potential problems. Key indicators to check are the accuracy of open invoices, bills owed, and bank reconciliation within 7 days.

If anything seems off, Katie urges reaching out to your bookkeeper or accountant to get clarity on what specific actions are needed to clean things up. Your financial team must be competent in supporting your evolving needs.

In this episode of the Profit First for Tradies, you’ll learn the following:

• Why proper bookkeeping matters in your business (00:13)

• How to utilise your Xero dashboard or any other bookkeeping system you may be using (01:04)

• Some things you can do to ensure your bookkeeping is correct (03:25)

• Katie’s action points for listeners (08:10)

Remember, listening without implementation will not drive change, so taking the necessary steps and implementing change, when necessary, are the solutions for anyone currently losing sleep over their business finances.

"I always talk about the bookkeeping being like the foundations of a house … if you don't set the foundations correctly, then everything else will eventually fall down." - Katie Crismale-Marshall

“Your financial team is critical to the success of your business. If you don't have an amazing financial team … that is one of the very biggest reasons why you are out of whack from a financial perspective.”  - Katie Crismale-Marshall

Resources

Xero 

Profit First for Tradies by Katie Crismale-Marshall

Email to Bookkeeper:

Hi [Amazing bookkeepers name here]

I want to get on top of my financials and I would love you help.

Can you please let me know what I need to do to make sure that when I look at my Xero dashboard:

1. The invoice section is showing the correct details ie. all invoices are in Xero and what is showing as outstanding is actually correct.

2. The bills section is showing the correct details ie. all bills are in my Xero and what is showing is actually what I owe.

3. There are no unreconciled items which are over 7 days old, if there is let me know if you need anything from me to get this up to date.

Thanks

CONNECT WITH KATIE CRISMALE-MARSHALL

Email: [email protected]

Website: https://www.profitfirstfortradies.com.au/

YouTube:https://www.youtube.com/@profitfirstfortradies9503/featured

Facebook: https://www.facebook.com/ProfitFirstforTradies/