4 common Bookkeeping mistakes

22 Jun 2018

If you are a small business owner, the thought of bookkeeping may be considered a tedious chore; a monthly task that you try to avoid. Hours and hours of your time could be spent on bookkeeping, ensuring that all of the data is correctly collected and inputted, leaving you less time to focus on your business.

 

You may not like the thought of bookkeeping but it is, in fact, a vital asset to your business, ensuring your business is well managed financially, can be the key for growth.

 

But with resentment and dis-interest mistakes are made! Here are 4 common bookkeeping mistakes to avoid:

 

 1.   Too much faffing

You may be a business owner, busy with multiple tasks but at the end of the month when your finances should be in order, you find yourself faffing to the max trying to avoid doing the books. Avoid this. Once you forget one month, the work you need to do will begin to mount and can cause more work for you in long-term.

We recommend having a specific day a week to ensure your bookkeeping is in order. We also recommend, hiring an accountant. Naturally, you’d expect us to say this, but hiring an accountant will ensure that your books are in tip-top condition and most importantly, accurate.

 

2.   Are you recording?

You may be busy running your business, but poor receipt and record keeping can cause more trouble than it’s worth. You might lose a receipt here and there or forget about small expenses.  This will all contribute to inaccurate financial statements and cause additional work and hassle. Ensure that you maintain your records on a monthly basis, it can help save you money and time on your income taxes.

 

3.   Up in the cloud

One common mistake we often see with business owners is manual bookkeeping. Organising and managing your books yourself could waste a precious amount of your time – and time is money! That’s why we recommend using a reliable and professional software to ensure your books are in order at the click of a button. We recommend Xero. Of course, we would, we love it! This beautifully simple, smart and cloud-based accounting software can change the way you work. Its time-saving tools including real-time smart reports, a mobile app and fast bank reconciliation will help to keep you focused on your business.

 

4.   Back. It. Up.

It’s a well-known fact that businesses today are heavily dependent on technology, but in some instances, technology can encounter blips. Just ask the people from VISA!  If you manage your accounts online be prepared and always back up your data. You never know when a potential threat could occur and you lose all of your data in the blink of an eye. Of course, this is another benefit to cloud-based software – no backups required!

 

If you find yourself wasting hours of your time and becoming increasingly frustrated with bookkeeping, N S Accounts & Technology can help. We are professional and reliable accountants who love bookkeeping! Get in touch today on 02920 647787 or email us at nikki@nsaccounts.co.uk.

 

 

 

 

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