Do you know what the most common complaint is among accounting professionals, whether they are CPAs, accountants, or bookkeepers? It’s not that accountants work long hours. It’s not that some of them despise dealing with the Internal Revenue Service. It’s not that they have to keep up with constantly changing accounting and tax laws.
Accountants’ number one complaint is that small businesses put things off until the last minute – business owners PROCRASTINATE. We can all agree that business owners are extremely busy – I know because I am one. But have you ever considered whether your procrastination is causing serious financial damage to your company?
We procrastinate for a variety of reasons:
- We are at a loss for what to do.
- We have no idea how to go about it.
- Our insatiable need for perfection
- Our apprehension of failing
These factors contribute to negative feelings about ourselves and our company’s finances. It’s no surprise that business owners put off dealing with their finances. They’ve built up negative feelings about the financial side of their company, largely because they’re
uncomfortable with numbers or embarrassed by their procrastination.
It’s understandable that most small business owners are apprehensive about the financial side of their operations. After all, the vast majority of people are uninterested in accounting and have never been taught how to handle personal or business finances.
Now that you know why you would procrastinate, let’s look at how your procrastination and avoidance behavior affects your business.
You are in a reactive mode when you procrastinate
What does this mean for your small business? Avoidance and procrastination put you in a reactive state. Rather than being proactive, you are constantly responding to the only thing that motivates you to keep your books up to date: filing a tax return or the threat of IRS penalties.
Isn’t it best to enlist the assistance of your accountant? That’s what they’re desperately trying to do, and it’s what they’ve been trained to do: help you catch up and move from reactive to proactive mode. Wouldn’t it be wonderful if, instead of responding to tax deadlines, you could spend time with your accountant deciphering your financial reports, gaining clarity and focus, and strategizing for your company’s future? Your accountant will not judge you based on your previous actions; instead, they will welcome the opportunity to assist you.
How to Overcome Procrastination
The most important thing to remember about procrastination is that we are all ashamed of our avoidance and procrastination habits. Procrastination is natural, but if we want to be successful business owners, we must learn to deal with it so that we can shift into “planning mode” rather than “reactive mode.”
It can be difficult to overcome procrastination; the key is to achieve small, consistent victories.
- If you do your own bookkeeping, set aside small bits of time on your calendar to work on it on a regular basis. Do you have 5 to 15 minutes a day to spare?
- Break down large projects into smaller tasks – if you’re more than a year behind on your bookkeeping, tackle one month at a time. Concentrate on small projects and refrain from considering larger ones. Is it possible for you to work on one month at a time?
- If you need accounting assistance, contact an accountant for assistance. Prepare to hand over bank statements and other documents that they may require. Break everything down into small tasks once more, and focus on one request at a time to avoid becoming overwhelmed.
Positivity
Is it possible that your procrastination is causing serious financial damage to your company? It’s a possibility. But now you know you’re not alone in procrastinating as a business owner. Don’t beat yourself up. It’s perfectly normal. Wouldn’t it be fantastic if you could become a proactive business owner with complete financial clarity? Wouldn’t it be wonderful if you could plan for your business’s success rather than reacting to deadlines?
How do you handle procrastination in your business?