If you’re a small business owner, you already know what a headache accounting can be, especially when you make a mistake. That’s why many owners hire firms like us, TenKey Management & Bookkeeping Services, to take care of their bookkeeping. Outsourcing your accounting needs allows you to focus on growing your business and helps you avoid common and costly mistakes, ultimately giving you peace of mind.
1. A Lack of Organization or Failing to Take Bookkeeping Seriously
This is one of the most significant accounting issues facing most new business owners. Effective bookkeeping requires vigilance and strong organization skills.
If you do not properly track and store information, from small transactions to large payments, it could come back to haunt you during tax season. Information should also be updated with regularity and punctuality to avoid forgetting a transaction.
2. Failing to Track Minor Receipts & Small Transactions
Minor receipts and small transactions can quickly add up. No matter how insignificant a transaction may seem, it’s still important to record it and file away a receipt.
In the case of a tax audit, you want to be able to show the IRS any and all proof of claimed expenses, etc. Receipts can also provide answers for any mistakes or gaps in your bookkeeping before the IRS gets involved.
3. Using Outdated Accounting Software or No Software at All
While you can track your finances in an excel spreadsheet or even keep a physical ledger, we don’t recommend it. These days, business owners and accountants have access to powerful software that makes it far easier to handle bookkeeping.
Most software allows for seamless integration of your bank account and your business’s financial data, like payroll and taxes. In the end, useful accounting software helps significantly reduce any chance of making mistakes.
4. Neglecting to Back Up Your Data
When you do implement accounting software, it’s also important to back up your data. Most software should automatically back up data, or at least make it easy to back up in case of an emergency.
The general rule of thumb is to keep two or more digital copies of each record and avoid relying solely on cloud-based hosting. While it is usually considered a thing of the past, some business owners even opt to keep physical paper copies.
5. Failing to Budget Projects Properly
Failing to budget a project properly can lead to a whole host of problems later down the road. Without established parameters, a project or endeavor can end up costing your business more money than it makes. Proper budgeting also allows you to plan ahead and make the necessary adjustments for growth.
6. Failing to Report on Sales & Payroll Taxes
As we’ve previously established, the IRS has a zero-tolerance policy for error. If you misrepresent your sales or the payroll taxes you owe to the government, you can expect to receive a considerable fine at a later date. As your professional accounting team, you can rest assured knowing we’ll double and triple-check your returns before sending them off.
7. Short Term Thinking
We here at TenKey Management & Bookkeeping Services not only want you to avoid mistakes, we also want to help you take your business to the next level. Many business owners that take care of their own books often get caught up in day-to-day or short-term thinking. When you outsource your finances, you free yourself up to focus on better business strategies, while we help you budget and plan for long-term goals with regular reporting.
8. Trying to Do It All Yourself
While this may be a necessity at first, trying to do it all yourself as your business continues to grow is extremely stressful. On top of that, stretching yourself too thin can lead to a series of easily avoidable mistakes, especially if you do not have a strong background in accounting and business tax law.
Outsourcing your accounting and bookkeeping is usually a necessary and encouraging sign of a successful, growing business. If you’ve landed on our site looking for an accountant, you’re on the right track.
Call Today!
Don’t let an accounting mistake hurt your business! Call 971-220-6416 or contact us at HELLO@TENKEYLLC.COM to speak to a team member about our accounting services today!
