Common Bookkeeping errors made by small businesses.

When starting your own business, the entire process can be a pretty daunting and overwhelming experience. Especially in the initial stages when you’re just finding your feet and establishing yourself. In order for you to stand any chance of making your business a success however, you will need to ensure that you have all of your accounts and books in order. After all the last thing you want to do is endure the wrath of the taxman.

Some people are naturally good when it comes to keeping books and records. On the other hand others, well, let’s just say that paperwork isn’t their strong point. If there’s one thing that is for certain however, it’s that, no matter how large or how small your business is, bookkeeping will have a significant role to play in deciding how successful you become. It also defines how smoothly your business will operate. Bookkeeping is not considered the most exciting task in the world, but it is an integral part of your business. To ensure you become as successful as you possibly can, take a look at these common bookkeeping errors made by small businesses.

BUSINESS RECORD KEEPING IS A VITAL TASK IN RUNNING A SUCCESSFUL BUSINESS

Failing to keep receipts for expenses – One of the biggest mistakes that small business owners make when it comes to bookkeeping, is failing to keep receipts for expenses. Say for example, you have to buy a pack of new stationary and paper perhaps. As the price will be so little, most people will simply take their receipt, roll it up, and throw it in the rubbish. However, when claiming your expenses back, you may be requested to provide proof of every single expense claimed, so no matter how small or insignificant it may be, you need to make sure that you store your receipts safely and securely.

CLOUD ACCOUNTING CAN REALLY HELP YOUR BUSINESS AVOID THESE COMMON BOOKKEEPING ERRORS.

Not using cloud accounting software – Cloud accounting software has come a long way. In a very short amount of time and it is going from strength to strength. When it comes to doing your books, cloud accounting software makes life so much easier for your bookkeeper and accountant. Indeed, for you as well.

You can easily communicate with one another. You can access records on the go. Plus, cloud accounting software is so, so secure when compared with other types of accounting software. The times are changing and to stay relevant, you need to get with the times, which means, embracing cloud accounting software.

Not keeping track of your income – Obviously when it comes to bookkeeping, the income and expenses of your business is incredibly relevant. The income and expenses are used to calculate your profit. It is this profit that will basically dictate whether or not you pay tax. If you do then which tax band you fall under, and exactly how much you pay. In some cases how much you can claim back.

It may be hard to believe, but there are businesses that don’t keep track of their incomes at all. So obviously when the time comes to do their bookkeeping, or to hand their books over to their accountant. Without proof of earnings, how can they be expected to provide accurate accounts?

BOOKKEEPING DOES NOT NEED TO BE A CHORE USE TECHNOLOGY TO HELP YOU.

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