Bookkeeping slip-ups can be expensive mistakes to make. Here’s a few common ones to look out for.
1. Handling it yourself:
Hiring a professional to do your bookkeeping can actually save you costs. Instead of wasting precious time on your books, having a professional with niche experience and knowledge to handle them for you will allow you to focus solely on your own areas of expertise.
2. Forgetting sales tax:
If you fail to accurately calculate and pay taxes owed, you could be fined, costing your business a lot of money in making up for a small mistake. To avoid this, find out and know your sales tax obligations, or hire an accountant to calculate your taxes accurately and keep your finances in order.
3. Throwing away receipts:
Receipts document all the expenses that you claim back, therefore you should always keep them. Losing or throwing away your receipts stops you being able to properly work out tax reductions. You should keep receipts for 7 years minimum.
4. Avoiding bookkeeping software:
Whether you’re bad with technology or simply reluctant to change, avoiding new bookkeeping software could be where you’re going wrong. Technology is the future, and not only will you save heaps of time, you will become more efficient and overall improve your performance.
5. Not separating business and personal accounts:
Paying for business expenses with personal funds when in a rush or emergency may seem easy at the time. However, not having separate business and personal accounts can make it hard to track specific transactions, causing legal, tax and financial problems.
To overcome this potential issue, business and personal accounts should be kept completely separate, with a dedicated bank card for each. You should also keep a small amount of cash in your business checking account to cover small, miscellaneous business expenses. Overall, this will help you accurately manage your books and keep a close eye on business transactions.
Connect with an expert to find the best solution for your business.
Why choose Pinnacle for your outsourcing needs?
Listen
We start the process by identifying what it is you need, the structure of your business and any issues you may have.
Customise
Your business is unique so we work with you to identify which key performance indicators you need and adapt or services accordingly.
Understand
We add value by providing recommendations on process improvements, efficiencies and tax savings.
Implement and Support
We can assist you with your new software set-up and help with the transfer of data between different accounting packages.
If you think we could be helping you, then connect with one of our team to find the best solution for your business mail@pinnacle.im or call the team on 627334
Andy McLarney
Andy is the Director at Pinnacle Bookkeeping Limited. For more bookkeeping and accounting advice please call us or complete our website contact form.
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