What Your Books Are Telling You (That You're Probably Ignoring)

From the Perspective of a Filipino Accountant Who Listens Closely to the Numbers

Over the years, I’ve worked with business owners across different industries—retailers, freelancers, online sellers, service providers. They come to me at various points in their journey: some stressed during tax season, some curious about growing, and others trying to recover from messy finances.

And time after time, I discover one powerful truth:
Their books were already giving them signs… they just didn’t know how to listen.

This blog isn’t about technical accounting. It’s about reading between the lines of your financial records—because your books aren’t just for taxes. They’re talking to you, constantly. And if you’re ignoring them, you're likely missing important clues about your business health.

📊 What Are “Books” Really Telling You?

Bookkeeping isn’t just about recording income and expenses—it’s the story of your business in numbers. As accountants, we decode that story. Let me show you what your books might be revealing:

🧾 1. You're Spending Too Much on Things That Don't Grow Your Business

A client once told me, “Basta may kita naman ako.” But when we looked at his records, more than ₱25,000/month was going to things like excess food deliveries, paid apps no longer used, and unmonitored withdrawals.

📌 What the books were saying: “Your net income is shrinking—not because of low sales, but due to poor spending habits.”
✅ Our solution: We set limits, created a spending tracker, and helped him redirect funds toward marketing and inventory instead.

📉 2. You're Making Sales—but Not Making Profit

Sales can feel exciting, but they don’t always mean your business is growing. One startup showed ₱1.2M in annual sales, but had only ₱48,000 in net income.

📌 What the books were saying: “You’re underpricing or over-discounting.”
✅ Our solution: We reviewed product pricing and cost of sales. Profit margin rose from 4% to 18% in six months—with zero increase in operating cost.

💸 3. Your Cash Flow is Telling You to Slow Down

Another client expanded quickly, opening a second branch in just six months. But her books showed a consistent cash deficit. She relied on credit cards and loan top-ups just to survive.

📌 What the books were saying: “You’re growing too fast without a safety net.”
✅ Our solution: We paused the expansion, cleared unpaid receivables, and monitored monthly cash flow. She’s now operating debt-free.

📉 4. You're Losing to Leakages—and You Don’t Know It

No formal system for recording inventory? No tracking for employee reimbursements? One client lost ₱90,000 in six months from “unrecorded" expenses and inventory errors.

📌 What the books were saying: “Internal controls are weak. You’re bleeding silently.”
✅ Our solution: We introduced an approval process, added documentation rules, and helped assign access levels. Shrinkage dropped by 80%.

📅 5. You’re Not Ready for Scaling or an Audit

If your books are vague, missing, or "ipon lang sa folder," you’ll struggle when it’s time to:

• Apply for a loan

• Attract investors

• Undergo a BIR audit

• Sell your business

• Make major decisions
  
  

📌 What the books are saying: “You're not prepared for what’s next.”
✅ Our solution: We cleaned the books, digitized files, registered accounting software, and created reports that the owner could understand at a glance.

🛠️ What Business Owners Can Do Today

If you want your business to be stable and scalable, here’s what you can start doing:

• Review your books monthly. Not just during tax season.

• Ask your accountant for insights, not just reports.

• Fix your Chart of Accounts so you can track useful categories.

• Train your staff on basic documentation and tracking.

• Set controls for expenses, withdrawals, and reimbursements.
  
  

💡 Final Thoughts: Listen Before It’s Too Late

Your books are always speaking. They reveal your habits, risks, opportunities, and direction. The question is: Are you listening?

As an accountant, I help business owners read between the lines, build better systems, and make smarter moves. Let me help you translate the story your numbers are telling—and turn that story into a strategy for growth, security, and peace of mind.

Because when you understand your books, you’re not just managing a business—you’re leading it.