What effect do the details of your business have on your life, stress level, or happiness?  Will having proper processes for everything in your business really give you peace of mind?  Two business owners; both successful, both busy, both stressed, but one uses accounting processes and procedures (Sue), and the other uses chance (Tom).  Which of these individuals mimic your daily life? 

6 am – Wake up and head to the shower.

Tom:   Notes that his company is running behind on a few projects.  Dries off and makes a mental note to “remember” later.

Sue:    Notes that her company is running behind on a few projects.  Dries off and sends herself an email from her blackberry to remind her of her thoughts. 

8 am – Arrive at the office.

Tom:  Realizes that the end of the month is next week.  Worries about whether there is enough cash in the bank to make payroll, rent, monthly utilities, and other obligations.  He opens the file to find that it has not been updated and he must update the QuickBooks bank account to the bank balance, in order to get an actual cash figure.  He reviews the Account Receivable report only to notice that the report is not accurate.  This could take some time to get updated….employee has a question….phone rings and a client has a question.  Anxiety has kicked in. 

Sue:  She begins her daily checklist and reviews reporting and has some cash flow questions heading into the end of the month.  She opens QuickBooks and notices that the file has been updated and bank account has been reconciled at the end of the prior month.  Reviews the Account Receivable report and notices that there are some customers that have not paid yet.  She determines delinquent accounts and calls immediately.  Anxiety attack is avoided and she can focus on the impending questions coming in from her employees and clients.

11:30 am – Time for lunch

Tom:  No time for lunch, still updating QuickBooks, “Boy was I behind!”  After this is done I need to follow up with prospects, call on delinquent accounts, update sales management software, create quotes, worry about cash flow, and complete some projects.

Sue:  She spends a quick lunch in her office reviewing her financial and sales reports and plans for a productive afternoon.  Project reviews and completions are scheduled with invoicing to follow.  Another day for Sue being efficient and billable.

5:00 pm – Time to head home

Tom:  It’s 5:00 already?  Looks like I’ll still need to do this, and “Oh No” I forgot about that.  It could be a late one.

Sue:  Heads home to enjoy her family and friends.  She didn’t get done everything on her list but she knows there is a time and place for it to be completed.

Panic attacks are big time wasters and they usually involve money.  In your business, time is valuable and by clearing up the items that could cause a panic attack at any moment you are that much farther ahead on any given day.  Accounting is the core of your business and cash flow can be the root of your frustrations.  Proper daily processes can bridge the gap.