Are bad books hurting your bottom line?
The heart and soul of your business are reflected in your financial records. If you prioritize cost over quality when selecting a bookkeeper, or worse, choose not to engage one at all, you may be deferring inevitable expenses to a later date. According to accountants, up to 30% of their time (which accounts for 30% of the fees you pay) is spent resolving bookkeeping errors. By hiring unskilled and inexperienced individuals, you risk spending more in the long term when someone else is called in to fix the mess.
In my work with businesses, I strive to educate them about the financial operations of their business, providing them with assurance that their records are accurate and organized. While bookkeeping may not be a task you enjoy, knowing the current status of your business finances allows you to plan for success and achieve your goals faster.
If you are unsure about where to start with your bookkeeping, know that you are not alone. But, as with visiting a mechanic, understanding the basics of bookkeeping will help you communicate your needs even if you outsource your bookkeeping. This guide was developed to assist you.
Pay attention if you believe any of the following issues apply to your current bookkeeping process. Addressing these problems now will cost less for your business in the long run.
Here’s my list of the most common bookkeeping mistakes I see from businesses.
- Mixing personal and business finances
- Failing to reconcile regularly
- Improper categorization of transactions
- Not keeping receipts and invoices organized
- Overlooking or forgetting to record expenses
- Not backing up financial data regularly
- Duplicate Transactions
- Not tracking sales & use tax appropriately
- Missing licensing and paperwork deadlines
- Choosing the cheapest bookkeeper
While the idea of finding a “bookkeeping soulmate” may seem like an overstatement, the benefits they bring in terms of time, financial savings, and peace of mind make them a valuable asset. It’s important to search for a skilled bookkeeper who invests time in understanding your business and establishing a lasting partnership built on trust and openness. With their assistance, you can concentrate on your business’s core aspects and make informed decisions that drive its growth.