How Smart Bookkeeping Can Improve Your Company’s performance (And Why You Should Care)

By ProfitWise

If you’re a small business owner, you’ve probably heard the term EBITDA tossed around by accountants or advisors. But what exactly does it mean—and more importantly, how can smart bookkeeping help improve it?

Let’s break it down in plain English.

What is EBITDA?

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It’s a measure of your company’s operating performance and a way to evaluate how profitable your business is before financial and accounting decisions (like taking out loans or buying large assets) come into play.

In short, EBITDA tells you how much money your business is really making through its core operations.

For example:

• If your revenue is strong but your EBITDA is low, it could mean your expenses are eating up your profits.

• If your EBITDA is growing, you’re likely on a good track—especially if you’re thinking about selling your business, attracting investors, or applying for a loan.

How Smart Bookkeeping Helps Boost EBITDA

A higher EBITDA usually means a healthier business—and that’s where smart bookkeeping comes in.

At ProfitWise, we don’t just track your numbers. We give meaning to them.

Here’s how we help improve your EBITDA:

• We keep your records accurate and current. This helps you catch unnecessary expenses and spot revenue gaps before they become serious problems.

• We meet with you once a month to walk you through your financials in simple terms. You’ll understand exactly where you stand, what’s working, and what needs to change.

• We identify cost-saving opportunities—from cutting back on overlooked subscriptions to correcting inefficient spending.

• We prepare your business for tax season and administrative audits by keeping everything clean, up-to-date, and well-documented.

• We help you keep more of what you earn, which directly improves your EBITDA and boosts long-term profitability.

Not a Numbers Person? You’re Not Alone.

We noticed a common theme among many of our clients: they didn’t understand the language of financial statements and didn’t have the time to sit down and figure it out. That’s a risky place to be as an entrepreneur.

Numbers tell a story—a story that can be the difference between success and failure. Ignoring the story or misunderstanding it can cost you valuable opportunities to grow or protect your business.

ProfitWise was created to fill that gap—a smart bookkeeping service designed specifically for busy entrepreneurs, backed by Visa Business Plans, a trusted business consulting firm serving business owners, investors, and immigration professionals since 2008.

If you’re too busy to dig into your financials—or if they just don’t make sense—contact ProfitWise today. We’ll help you stay on track, make informed decisions, and keep more of your profit in your pocket.

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