Common Mistakes of Amateur Bookkeeping
Not everyone with a business background is qualified to manage finances. Even for small businesses, bookkeeping can be complicated. Balancing payroll and profits, along with fixed and variable expenses, can easily get out of hand. When you have other important responsibilities to juggle (like day to day operations and staff management) it’s easy to become overwhelmed by bookkeeping. Rather than trying to navigate the books all by yourself, get the resources you need to put a professional system in place. Here are some of the common mistakes we see when business owners opt for amateur bookkeeping.
Over-Complicating Things and Not Having a Backup
A good bookkeeping system is simple, cohesive and streamlined. If you have too many systems for bookkeeping, you can lose track of important information and miss key components. Avoid getting into a situation where the “right hand doesn’t know what the left is doing.” Connect all your bookkeeping systems to an automated program that works in conjunction with every aspect of your business dealings. While a good bookkeeping system needs to be comprehensive, it shouldn’t be needlessly complicated. This can cause you to lose important receipts, waste time duplicating records and result in costly errors. That being said, it’s important to always back-up your files. Technology is great, but it isn’t fail-proof. Save yourself stress by saving a backup of your records on an external drive.
Mixing Personal and Business Finances
As a small business owner, it can be tough not to let your personal life overlap with your business. When it comes to bookkeeping, this is a big no-no. If your business ever gets audited, you need to make sure your personal finances are separate from your business records. Keeping track of every detail, including petty cash management and reimbursable expenses, will make sure that you’re not losing money by forgetting various funds. Be prepared for audits by keeping business records that are clear cut and not muddled with your personal money. Don’t let an amateur bookkeeper cost you or potentially ruin your business. Avoid these mistakes by choosing Alron Bookkeeping, Inc. to assist you with professional bookkeeping that you can rely on.
How Alron Can Make a Difference
If you’re in over your head, get help from a professional accountant. Someone who knows the world of business numbers will ensure you aren’t missing anything important, and save you from major headaches down the road. Here at Alron Bookkeeping, Inc., a subsidiary of Alron Enterprises, Inc., we simplify accounting for you, so that you can focus on what matters most: growing your small business. Let our bookkeeping specialists handle your accounts and put your mind at ease. Contact us at 321-951-7626 or by emailing [email protected]. We look forward to working with you!