Accounting may not be the most exciting part of a business, but it is an integral part of success. We primarily keep score for our business based on how it generates revenue. More importantly, a company needs to gain a profit on that income. When we do not track the ins and outs of our funds, we are more likely to have more going out than in.
Accounting As A Means of Protecting Ourselves
When a business is a means to pay our salary or those of others then revenue and profit is seen as critical. However, a side hustle is often done for fun or extra spending money instead of paying bills. Thus, it is easy to gloss over the costs that go into that side-hustle. At the end of the day, we find our selves with a little more money in our pocket. Unfortunately, the cost of producing that money is sometimes more than it is worth.
Track Costs For Smart Investing
No matter your situation, your time is worth money. You also need to be aware of the incidental costs involved in your projects. Everyday things like gas for travel, office supplies, shipping costs, and even tools can be overlooked when calculating profit. This may not be a problem early on, but when it comes time to move from side-hustle to a full-time gig, those costs can be critical.
