Time management plays an important role in running a successful pet care business. Dog groomers, boarders, and trainers must balance the time spent on business operations with the time required to care for each pet. Sometimes, there just aren’t enough hours in a day! With so many irons in the fire, many pet care business owners lack the time for proper bookkeeping. Unfortunately, neglecting to care for business finances can leave them vulnerable to bank overdraft fees, tax penalties, and anxiety worse than any panting, pacing, and whining dog in their care.

Financial Neglect: A Risky Business

When your financial records are in as good of shape as the pets you care for, businesses can prosper. With a clean set of books, you’re more likely to qualify for a bank loan and more adept at making business decisions. You trust the numbers, not gut instinct, to decide whether to invest in the latest pet care equipment, marketing brochures, staff training, and other elements to operate your business.

Basic Terms for Effective Financial Management

Every business has its own way of managing payroll, invoices, bill paying, and cash flow. However, all businesses follow the same basic accounting methods. By understanding a few basic bookkeeping terms, pet care businesses find it easier to monitor their financial performance and understand their financial health.

5 basic bookkeeping terms used in everyday financial management for pet care businesses:

• Assets: A resource of value that businesses own or lease, such as boarding kennels, grooming equipment, and facilities

• Liabilities: The amount of money a business owes to vendors, lenders, and others

• Equity: The value of the assets after deducting liabilities

• Income: The money earned from services associated with pet boarding, grooming, and training

• Expenses: The cost of operating a pet care business, such as rent, utilities, salaries, and marketing

Analyzing Financial Strength and Value

By understanding the three main types of financial statements, pet care businesses can analyze their company’s financial strength and value.  

3 financial statements used in everyday financial management for pet care businesses:

• Balance Sheet: A snapshot of a company’s assets, liabilities, and equity

• Income Statement (AKA Profit and Loss): Overview of income and expenses

• Cash Flow Statement: The inflow and outflow of cash during a particular period

Learn more about small business accounting by reading this QuickBooks article: What is accounting: Types, examples, and frequently asked questions.

The Wisdom of Outsourcing Bookkeeping

Knowing these basic bookkeeping terms is a good place to start to learn to manage your business accounts. However, it’s only the start. Maintaining accurate financial records requires a thorough understanding of business finance and accounting practices. If you’re not passionate about numbers and you don’t have the time or aptitude for accounting, it’s wise to outsource your bookkeeping.

Virtual Financial Management & Online Bookkeeping Services

Businesses that find success in grooming, boarding, and training services know how to efficiently manage their time. Oftentimes, that means outsourcing their bookkeeping to a professional service like Prosperity Bookkeeping. Prosperity Bookkeeping exclusively serves the pet care industry. We balance the books, while you pamper paws. If you’re struggling to keep up with your bookkeeping, contact us for a free consultation. We provide virtual financial management and online bookkeeping services for dog groomers, boarders, and trainers, so you can focus your attention on your furry friends.