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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.

Reasons Why A Business Owner Should Invest In A Good Bookkeeper

Managing your business is not an easy task because you need to pay serious attention to all business aspects. One of the things that a business owner should take into consideration is the financial activities because it is the key factor that determines if the business has a chance of expanding in the future. A bookkeeper should have the ability to get things done and make sure that tax payments are made in a timely manner. Creditors are usually looking at the reputation of a business owner and when payments are always delayed, they will also doubt if you can make timely payments.

The benefits of choosing an efficient bookkeeper:

•    Greater peace of mind
When you know that you are entrusting your financial report in a bookkeeper that can get the job done, you will no longer have to worry about irregularities. A business owner may only have basic knowledge on bookkeeping, but when the task is assigned to a trusted bookkeeping professional, you are assured that one of the most important aspects of your business is in good hands.

•    Bookkeeping tasks are handled properly
Reports need to be accurately created because the details are going to be used for making a recommendation. If a bookkeeper cannot provide detailed information of your financial status as a business owner, you will never know where your business is heading. You may think that everything is going in the right direction, but once you start checking your financial report, everything is not right. When you are working with a competent bookkeeper, you will be able to be more aware of the aspects of your business that need improvement. You will also know if you are ready to grow your business.

•    Systematic bookkeeping process
The procedures and systems need to be systematic for record-keeping to be more effective. For instance, keeping important receipts is an important part of the bookkeeping process. Without this process, business owners will have difficulties keeping track of their expenses. When a bookkeeper keeps track of expenses by keeping receipts, it is easy for every business owner to know if they still have enough money to cover daily expenses.

•    Timely payments
A bookkeeping professional knows when important payments must be lodged. The cash intended for payments are set aside to avoid penalties from ATO. If a bookkeeper is not efficient, payments will be missed and penalties will pile up. One thing that a bookkeeper does to ensure that you make timely payments is ensure that you are not using business account for personal expenses. A bookkeeper also checks cash flow to ensure that it is still intact. Minor mistakes such as forgetting to track daily business expenses can have a negative effect on one’s business.

To some business owners, hiring a bookkeeper can be costly, but the benefits a bookkeeping professional provides definitely outweigh the cost in the long run. If a business owner takes a look at the bigger picture, a bookkeeper can be an asset especially when they are doing their job such as tracking your finances regularly.

Why Hire A Bookkeeping Service?

Small business owners often consider hiring a bookkeeper costly, but they realise the importance of a bookkeeping service when the business’ financial aspect is in chaos. A savvy business owner will consider hiring a bookkeeper to focus on other front-end activities. While this may not seem practical at first, a business owner will find a bookkeeper useful when everything is placed in proper financial perspective.

Benefits of hiring a bookkeeping service

•    It saves time.
When it comes to data entry, accuracy is important because the financial statement will serve as a basis for bookkeepers to know the direction the business is heading. If figures are not clear, you will have trouble ensuring that your records are accurate and clean. It is important that you keep records of the book. When a bookkeeping service is available to take care of these tasks, not only will business owners prioritise front-end activities such as maintaining a positive company image, generating sales and strengthening relationships with vendors there is also a greater peace of mind knowing records are in good hands.

•    Professional help is provided.
Relying your bookkeeping tasks on professionals will give you an assurance that important tasks are well taken care of. As a result, you will no longer have to worry about filing tax returns because you are confident that your records have been handled by a qualified bookkeeper. You can also be sure that you obtain a certain level of professionalism and expertise.

•    It saves money.
Every cent counts for a small business owner. Unlike established companies, cash flow is limited for a small business. One of the ways that small business owners do to save money is to cut corners even if the financial aspect of the business is greatly affected. However, when you cut labor costs, you may also be compromising on the quality of your daily task. If you have a full-time bookkeeper, you will no longer have to think about bookkeeping since there is a qualified individual who can efficiently do the job.

•    More focus on the task at hand.
Although many businesses tend to multi-task, there are still some drawbacks in multitasking that small business owners need to take into consideration. Since the business owners cannot give 100% of their attention to the client, financial and administrative matters are often overlooked. When professionals take care of bookkeeping tasks, financial matters are handled efficiently. Small business owners no longer have to worry about missing out on important details of bookkeeping.

•    Things get done professionally.
DIY bookkeeping may not give you the best results you are looking for. Although your intention is to save money for your expansion, you may not be able to achieve this goal if there are irregularities in your financial activity. A bookkeeper will see to it that things are done correctly.