Common Bookkeeping Mistakes That Most People Make
As a small business owner, keeping up with your bookkeeping processes can help you be consistent with your financial management and growth. However, as your business expands, keeping up with the bookkeeping processes turns into a tedious and mundane task. Eventually, you give it less importance, start losing focus, and eventually jeopardize the whole accounting process. Moreover, if you don’t catch bookkeeping errors early on, it could hamper the entire business. To help manage your finances accurately and effectively without committing errors, ALL-PRO Business & Bookkeeping Corp. has compiled a list of the most common mistakes people make with bookkeeping that you should avoid.
1. Trying to do the bookkeeping themselves
It is understandable that business owners want to save money by doing their bookkeeping themselves. However, they don’t understand the ramifications if done incorrectly. Plus, it ends up costing them more money, in the long run, to have someone fix it all.
2. Not hiring a qualified bookkeeper
There are many people who call themselves “bookkeepers” but don’t actually have the qualifications and, or schooling to prove. So, make sure you always check reputable references.
3. Not reconciling your bank and credit card accounts
This is very important! It is where a lot of transactions get missed if your accounts are not reconciled correctly.
4. Missing filing deadlines with Canada Revenue Agency (CRA)
When your taxes are not filed on time, you will be charged late filing penalties and interest on any amounts owed to CRA. That is why it is imperative to have a qualified bookkeeper to ensure none of these get missed.
5. Mixing business and personal spending
It is essential to keep these expenses separate at all times! There are several problems associated with the mingling of business and personal spending. The worst-case scenario is falling into a legal soup. So, ensure you keep your accounts totally separate and occasionally review both expenses.
6. Skimping on financial statements
If you don’t know what your financial statements mean, make sure you hire an experienced bookkeeper who can explain the numbers to you and where they came from. This will help you avoid financial disaster.
To avoid these and other mistakes, reach out to the experts at ALL-PRO Business & Bookkeeping Corp.. With experience and knowledge of over two decades on our side, we provide exceptional services in both the private and public sectors. We help our clients handle their financials most efficiently and customize our services for their business needs if required weekly semi-monthly, monthly, quarterly, or an annual bookkeeping service. Our full range of bookkeeping services are extended to clients across Airdrie, Cochrane, Bearspaw, Bragg Creek, Calgary, Chestermere, Strathmore, and De Winton Okotoks, Black Diamond and High River, AB.