Benefits of working with an experienced bookkeeper

An experienced Bookkeeper brings their years of experience, professionalism and innovative strategies right to you and your company. They ensure you find innovative ways to continue to grow your business and achieve your goals.

With professional bookkeeping, you have access to the statements, reports, and figures you need to more confidently make decisions that are right for your future.

What Are The 10 Most Common Mistakes When Doing Your Own Books?

Many new small businesses feel that they cannot afford bookkeeping services. Our response to that is time is money - and the more time you are spending on your bookkeeping, the less time you are spending on your business making money. That is where you have to ask yourself "what is my time worth?" 

When businesses handle their own bookkeeping, especially if they lack specialized training in accounting or finance, they often encounter certain common pitfalls. Here are ten of the most common mistakes:

1. FIRST AND MOST COMMON MISTAKE is NOT hiring a bookkeeper before you get started. Usually because they think it’s no big deal. People feel they can do the books easily, or their spouse can. Months later they call and give it to us to fix. Hiring a bookkeeper right away can help you determine what kind of bookkeeping you need, best way to set up your business, setting up GST accounts and so much more . This also includes tasks such as how to reserve your business name, how to incorporate and so much more. Businesses don't plan to fail, they fail to plan. [Benjamin Franklin quote modernized]  It is also why we offer a FREE 1/2 HOUR CONSULT to help you get started on the right foot.
2. Mixing Personal and Business Finances: One of the most common errors is failing to separate personal and business accounts. This can lead to confusion, inaccurate records, and complications during tax time.
3. Inconsistent Record-Keeping: Inconsistent tracking of financial transactions can result in inaccurate financial statements. It's crucial to record all transactions methodically and regularly.
4. Neglecting to Reconcile Bank Statements: Not regularly reconciling book records with bank statements can lead to discrepancies, potentially causing issues with cash flow management and financial reporting.
5. Poor Receipt Management: Failing to keep or organize receipts can be problematic, especially during tax season or in the event of an audit. Receipts are necessary for verifying transactions and expenses.
6. Inadequate Understanding of Bookkeeping Principles: A lack of understanding of basic accounting principles, such as the difference between cash and accrual accounting, can result in significant errors in financial reporting.
7. Ignoring Accounts Receivable and Payable: Not diligently tracking what is owed to and by the business can lead to cash flow problems. It's important to monitor these accounts to ensure timely payments and collections.
8. Incorrect Tax Filings: Without proper knowledge, it's easy to make mistakes on tax filings, such as missing deductions, incorrect reporting of income, or misunderstanding tax laws. This can lead to penalties and audits.
9. Failing to Plan for Major Expenses and Lack of Regular Financial Review: Businesses often fail to plan for future large expenses or tax payments, which can lead to cash flow crises when these expenses become due. Not regularly reviewing financial statements (like the balance sheet, income statement, and cash flow statement) can prevent business owners from understanding their financial position and making informed decisions.
10. Using Inappropriate or Outdated Software: Utilizing software that doesn’t suit the business's needs, or failing to update or properly use bookkeeping software, can result in inefficiencies and errors in financial record-keeping.

To mitigate these mistakes, businesses can benefit from investing in good accounting software, keeping up with basic bookkeeping education, or consulting with a professional bookkeeper for guidance and best practices.

Hire a professional and take the stress
out of bookkeeping.

Hire a professional and take the stress  out of bookkeeping.