Are You Making These Common Business Bookkeeping Mistakes?

Common Business Bookkeeping Mistakes

It can be a big responsibility to run a small business, and many business owners find it difficult to keep up with the daily tasks. Unfortunately, one area that is often neglected is bookkeeping. These financial details are essential to ensure the future success of your company.

Here are a few common bookkeeping mistakes faced by small business owners:

1. A Do-It-Yourself Approach

Business owners often wear many hats, especially when the company is within the first few years of being in business. A business owner might be the recruiter, bookkeeper, front desk, and manager all in the same day. The problem is that many small business owners don’t have experience with all of these tasks.

When it comes to bookkeeping, a do-it-yourself approach might result in missed transactions, messy files, and incorrect financial reports. These problems can have a domino effect to impact all aspects of the company negatively. Instead of trying to handle these details on your own, it is better to hire a professional team to help.

2. Choosing the Wrong System

The software that you select for your business finances will have a direct effect on how easy it is to keep up with daily, weekly, and monthly bookkeeping tasks. Some business owners make the big mistake of tracking their accounting on a spreadsheet instead of using an actual accounting system.

Instead of trying to do everything by hand, choose a bookkeeping software that will do the heavy lifting for you. Talk to an experienced bookkeeper to make sure that your software choice will work well for the structure of your business.

3. Wrong Transaction Categories

The categories that you select for your business transactions will impact the way your tax return is filed for the year. Even if you are tracking every penny that moves through your bank account, the categorization can cause confusion.

If you are planning to take business deductions, then you need to be sure that the categories are correct. When it comes time to do your taxes, your accountant might be dealing with a big mess if the categories are incorrect. Save yourself a headache by ensuring that the right categories are used throughout the year.

Are you ready to let a professional bookkeeping team handle your business finances? Call us right away at Easier Bookkeeping to learn more about the financial services that we offer. Our team is always available to help: (888) 620-0770

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