5 Mistakes Small Business Owners Make And How A Bookkeeper Can Correct Them

Small business owners should not put the blame on bookkeepers for costly financial mistakes because an entrepreneur can also commit these errors. Although these may be minor errors, they can still stunt business growth. The good news is, you can still learn from your mistakes and a reliable bookkeeper can help you straighten things out and put an end to your bookkeeping woes.

Lying about personal income

When it comes to paying your taxes, the higher your income the more taxes you are going to owe. Although this is a simple equation, overstating income can have a serious effect on your business. For instance, failing to declare your personal income will give you problems when it is tax time. Your business owner should remind you to be honest about your personal income. This way, you will not have any problems when paying your taxes.

Not hiring a bookkeeper

All business owners need a bookkeeping professional to put things in proper perspective. Someone who is proficient in bookkeeping can manage your financial report and make sure that you are audit-ready. Unfortunately, there are business owners who choose to cut corners, living under the impression that a bookkeeper is part of unnecessary expenses they need to stay away from. A bookkeeper knows how to deal with your finances. They can efficiently use their time so you can get better results. As tax time approaches, you will no longer have to worry about your reports as they are well taken care of by a reliable bookkeeper. If you are still hesitant to hire a bookkeeper due to the cost of the service, make sure you keep the long-term benefits in mind and you will realise that a bookkeeper is more of an asset than a liability.

Putting off important tasks

Entrepreneurs are busy and they can find themselves juggling multiple tasks at the same time. However, this should not be an excuse for procrastinating as an avalanche of tasks may come your way and you may end up getting overwhelmed. Schedule time for bookkeeping task and avoid doing it yourself. There should be a bookkeeping professional to help you get things done and carry out these tasks at the time most convenient to you and your bookkeeper.

Data entry errors

When you do not have a solid grasp of bookkeeping concepts, you will find it difficult to come up with an accurate and error-free report. There are cloud-based accounting programs that can solve problems with data entry. With this program, it will be much easier for you to identify any mistakes on the report and critical errors are easily corrected.

Tamara Deterding

Written by : Tamara Deterding