All businesses require accurate financial records that are kept to ensure the health and success of the business. Unfortunately, many new or small businesses will skip hiring a pro in an effort to save some cash. Where this alone can be a big mistake, there are many bookkeeping mistakes that are quite common. With this in mind, we at Mecham Dicus & Company would like to share these common bookkeeping mistakes that are made.
Bookkeeping Mistakes Made By Small Businesses
1) Poor records management. Missing receipts add up and can quickly become a sizable gap in your financial tracking with the certain expenses may seem small or insignificant in the grand scheme of things, as many professionals can attest to. Make certain you are keeping accurate, consistent financial records to make the best decisions possible for your business.
2) Wrong business expense categories. To make certain all income and expenses are categorized correctly is very critical. In addition to assisting you in tracking profitability, miscategorized items, it can also affect financing documentation and tax treatment.
3) Reimbursable expenses that are not being properly tracked. It is essential that whether there are last-minute supplies, transportation, lodging, or one of the many other expenses you pull out your wallet for, they are including in your financial tracking. If you want to get the deductions, you are entitled to at tax time in addition to the receipts you collect.
4) Neglecting to preserve backup copies. Being a common occurrence, files are commonly deleted accidentally, or a folder lost. In case of a technology fail or office concern, make certain to keep backup copies of all of your bank statements and receipts. To get lost in the shuffle, these records are too critical to your business.
5) Doing all the bookkeeping yourself. Consider your own value to your business before you decide you can find a few more hours in your schedule this month to save a few dollars and do your bookkeeping yourself. Contemplate working with a professional bookkeeping expert as opposed to sacrificing time you could be spending on business strategy, management, or building the relationships only you can make. In building your business, this would allow you to put your energy back where it needs to be.
Bookkeepers, Accountants & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
When it comes to bookkeeping, there is far more data that needs to be tracked than what most small business owners consider. Without proper training, organization, and even planning, the bookkeeping information can be lost and unaccounted for. Ultimately, it is in your better interest to trust in a professional for assistance. For your bookkeeping, accounting, tax services, and even consulting needs, you need the professionals of Mecham Dicus & Company. Our experts have the formal training, years of experience, and remarkable skills to ensure your business’s work is done accurately. Contact our friendly office for consultation to discuss your business’s bookkeeping needs. When it comes to bookkeeping services, our professionals can ensure you books are well-kept. Our bookkeeping services are of the highest quality, meticulous and thorough, giving you a clear view of your business’s health.