We all understand how stressful, challenging yet fulfilling owning and operating a small business can be. It is a remarkable feeling to be able to see all your dreams turn into true realities. You not only have taken your ideas to the next level, but you are your own boss, make your own hours, and have every opportunity to provide products or services that benefit consumers. Though marketing and creative skills are essential to your successful business, ensuring that all your business finances are in order, all the time, is every bit as essential if not more so. Bookkeeping is a vital component of any successful business and avoiding bookkeeping mistakes ensures that you are in a position to enjoy profits and watch your investment grow.
Bookkeeping Mistakes to Avoid
Here at TA Bookkeeping Services, LLC, our team of highly skilled and professional bookkeeping specialists is steadfast in meeting the individual needs of all our valued clients. We understand full well that your small business is probably the largest investment you will make in a lifetime. With that thought in mind, we want to take this time to share with you some of the most common bookkeeping mistakes that many small business owners make that can actually contribute to the downfall or even the demise of their business.
- A Missing Business Plan – Planning is such a critical component in anything in life, and that includes starting your own small business. Before launching your business, it is essential that you create and put in place a strong business plan to ensure that you, the new business owner, are prepared to put your new business into operation. The ideal business plan should include all your financial and business goals along with a concise bookkeeping protocol and process.
- Lack of Adequate Budget – It pretty much goes without saying, that starting up and operating a new small business usually includes a somewhat restricted cashflow. As a result, it takes time before you are able to actually see a profit. To this point, you want to make certain that the existing cashflow you have is within the budget needs of your small business startup. To do this, be sure to itemize all your expenses in your efforts to create a definitive budget. This allows you to focus on how money will be spent within your small business over time.
- Minimized Organizational Skills – One of the biggest problems faced by most small business owners is that of proper record keeping. Keeping track of all your inventory, and finances can be a true challenge for any business owner. With organization, and especially bookkeeping organization, comes less stress and less time wasted along with more accurate accounting and streamlining of finances. That’s where the pros here at TA Bookkeeping Services, LLC come in.
- Separating Business and Personal Accounts and Activities – In order to avoid any issues with tax filings or the IRS, it is imperative that small business owners separate, right out of the gate, any and all personal and business accounts. As a small business owner, you may find yourself relying upon personal finances to help run the business. Blending the two together can result in some serious issues, so be sure to separate the two from the start and keep them separated.
- Improper Classification of Employees – Small businesses are certainly all about bookkeeping, finances, products, services, marketing and advertising, but it is also all about your employees and your payroll. With that said, it is important that you keep adequate records of all your employees, their status, their pay scale, and other pertinent information. Come tax filing time, this information is essential to the process and you certainly don’t want to be faced with misfiling and information.
At TA Bookkeeping Services, LLC we stand ready to meet your every need. Though keeping your own books is an option, there is much to be said about professional bookkeeping protocols. There are so many intimate components to bookkeeping that truly take a good deal of time to learn and fully understand.
As a small business owner, you may not be adept in all the aspects of bookkeeping and may recognize that relying upon outsourced bookkeeping services may be the ideal option for you. Wanting to avoid bookkeeping mistakes and ensuring that your business finances are being properly tracked and efficient, the team here at TA Bookkeeping Services, LLC suggests you put your trust in us. For more information about our outstanding bookkeeping services and other services we provide to small business owners, be sure to give a shout out to one of our staff today and schedule your free consultation. We look forward to helping you to start up your new small business and watching it grow successfully through the years!