Can’t I just write checks, make deposits, and do my tax returns?

If you don’t do any accounting, then that’s probably all you’re doing—making deposits, writing checks, and paying taxes, but not making any profit!

Even in a very small business you need to be in control of your expenses. This doesn’t just mean having the money, it means knowing what portion of your revenue gets spent for what purposes. What percentage of revenue do you spend on marketing each month? What about labor? What about supplies?

If you don’t track and control these expenditures, you are not managing your business—you are just blindly hoping there might someday be a profit.