When you own and run a small business, there isn’t room for mistakes. You are working to build up a successful company. That takes work and it takes grit. One think that can make or break your business is bookkeeping. When you aren’t keeping accurate records, it can lead to mistakes being made and money lost. That’s why business owners need to diligently work to avoid common bookkeeping mistakes. Propel Your Accounting is here to share some of the most common bookkeeping mistakes that small businesses make.
Putting It on the Back Burner
As a business owner, you likely have several irons in the fire. This means that your attention is split between several different aspects of your business at any given time. You are more than likely working long hours and don’t have the energy to give bookkeeping the attention that it needs. This can mean that there is a tendency to put off bookkeeping until you have some spare time to take care of it. This leads to inaccurate bookkeeping and important information falling through the cracks. You need to record all of the invoices and transactions, monitor inventory, reconcile sales.
Not Saving Receipts
Sometimes, business owners don’t have a habit of keeping receipts to record in their financial records. This is especially true for smaller transactions that are under $75. This can lead to huge problems for your company come tax season. You will need to have all of these receipts should you fall victim to an audit. It can be helpful to keep track of all these small, tiny transactions by using a business credit card when making these smaller purchase. That way, should you misplace or forget a receipt, all the information is right there in your bank records.
Failing to Reconcile
Bank statements can seem pointless and are often not given more than a short glance by business owners. However, it is an important part of bookkeeping to do as deeper dive into those bank statements that come in your inbox or mailbox. When you reconcile these statements, you are able to see flaws, errors, fraudulent charges, and check accounts payable and accounts receivable. This is all important information. If there are errors there, you can work quickly to remedy the situation.
Failing to Hire a Bookkeeper
It can be difficult to give bookkeeping the attention it requires to keep your business afloat this is why it can beneficial to hire a professional bookkeeper to help you take care of all the monotonous record keeping that bookkeeping often entails. If you are looking for bookkeeping and accounting services, you can turn to Propel Your Accounting to get it done for you. We will handle all this work behind the scenes so that you don’t have to. Let us help you reach the success you’re looking for through bookkeeping and accounting services. Call us today!
