As a small business owner, your business is your baby and it can be difficult to delegate tasks. But, everyone makes mistakes from time to time, especially when it comes to bookkeeping. Keeping these 4 common mistakes in mind can save you from lots of unnecessary stress and messy financials.
#1: NOT TRACKING SMALL EXPENSES
Small charges add up fast. $5 here or there can quickly become hundreds by the end of the year. Skipping these small expenses can result in paying more taxes comes April.
#2: COMMINGLING PERSONAL AND BUSINESS EXPENSES
Mixing personal and business expenses gets messy fast. Even worse, it can be difficult to account for when you sit down to do your bookkeeping. Be vigilant when making purchases. Personal expenses go on personal cards and business expenses go on business cards.
#3: NOT KEEPING BACKUPS
Cloud programs like Xero and Quickbooks Online let you get your bookkeeping done from anywhere in the world. But, it’s important to periodically export your data and keep a non-cloud copy. Otherwise, a compromised account or cloud issue will ruin all your hard work.
#4: DOING IT YOURSELF
Bookkeeping isn’t as easy as it sounds and procrastinating can be pretty appealing. But, leaving your bookkeeping till later can put you in a bad position and leave you without a proper understanding of your business’s finances. If you can’t find the time to do your bookkeeping, consider outsourcing it.
Bookkeeping isn’t as difficult as climbing Mount Everest. But, little mistakes can make fixing your records seem like just as much of a challenge. So, keep these mistakes in mind and if you ever want to make the switch to an outsourced bookkeeper, please reach out.
Phone: (631) 624-0515