20/01/2026
Where has my profit gone?
When opening a new company, a lot of founders choose to do their own bookkeeping for financial reasons. Whilst this does save money at the start, it could end up costing a fair bit in the long run.
Picture this, you created a Hopsky Rocksky for your kids and it was such a hit, you decided to turn that into a business. Next thing you know, these little rockets are flying off the shelf and your busy trying to keep up with the manufacturing and fulfilling these orders you never really got around to doing your bookkeeping.
Your 6, 9 even 12 months down the line and finally manage to carve out some time to sit down and get your accounts up to date. As your processing your supplier bills your start to see your profit reducing drastically and it dawns on you that whilst Hopsky Rocksky is so popular, between your cost of sales and overheads you don't have the profit left to pay yourself the dividends you were relying on in Q4.
Now rewind back to month one, you contact Burtland Bookkeeping & Accounts and we begin working together. We keep your bookkeeping up to date and provide monthly management accounts. Within our first month together, it becomes apparent that your margin on the rockets is too low, which we raise with you at our catch up meeting. You take immediate action and review material suppliers as well as increasing the price ever so slightly. Your product is now in line with the market value for this type of toy and you continue trading the rest of the year with the same demand as above. This time you end the year with cash in the bank, profit in your P&L and the salary and the dividends you wished for. This is all because you corrected your margin earlier on rather than when it was too late.
It's easy to get swept up in all the other areas of the business and leave the accounts to last minute, but that could lead to a nasty surprise when you finally get around to it. So why not invest in your finance function now to avoid being disappointed at year end?
Give us a call on 07404 060 051, drop us an email on [email protected] or send a DM to discuss your needs.
*AI generated image, The Hopsky Rocksky is not a real product.