Kane Accounting

Blog

Accounting Basics

How to ‘KonMari’ your Books

Have you watched the Netflix sensation “Tidying up with Marie Kondo”? Did you know that it’s based on her book,"The Life Changing Magic of Tidying Up"? In the show, Marie helps her clients learn to "tidy" their homes and only keep items that "spark joy."

I confess: I watched all the episodes and that inspired me to read the book. I have “KonMaried” my pantry, clothes, medicine cabinet, and refrigerator. Even my 9-year-old son has learned to fold his clothes using her method and it helps keep his clothes in order. When I can actually get him to do it, that is…

Funny story: after organizing all these areas in our home within a month, my husband went to his own closet and said “Just so you know, all of this sparks joy! All of it!”

Do your financials spark joy?

Your business’ financial books should be the same way. Everything in there should spark joy in some way. Now, I get it. Most don’t get too excited about paying for insurance, for example. But the value you get from having it and avoiding the problems you would face by not having insurance is what sparks the joy, or gives you peace of mind.

One thing I like about Marie Kondo is that she never tells you what to keep or what to get rid of. She lets you decide. With that in mind, here are 3 ways to “spark joy” in your business.

3 Ways to Spark Joy in your Business

  1. Look at your revenue that comes from each product or service. Consider the 80/20 rule, which says that 80 percent of your revenue comes from 20 percent of your clients. Are there some clients or products in the 80 percent that you could stop serving to free up more time to work with the 20 percent? Also, determine if you can discontinue a product or service that is not bringing in enough money or that you simply do not enjoy.

  2. Look at your expenses and see if there are things you’re spending money on that you can cut out. Are there online subscriptions you don’t really use or maybe a recurring service you signed up for but don’t really need any more? What changes can you make that will improve the value you get on what you’re spending? For example, how often are you going out for lunch? Do you really need all those office supplies?

  3. Look at all that your business does, including tasks you do to keep the business going. Is there something you hate doing that you should contract out, thus giving you more time to do what you enjoy? Are there clients/customers that take up a lot of your time but maybe aren’t enjoyable to work with? Are there any clients that perhaps you’ve outgrown? Consider changing those relationships, including referring them somewhere else.

Let me help

On Marie Kondo’s show, all the couples she worked with felt so much better after their house was in order. They expressed relief and freedom from the clutter. I love working with clients to make sure they are spending their time and resources on what they truly love doing. Letting me manage your books brings me joy and frees you up to find the things that truly spark joy in your own business. Contact me today!