Mistakes happen, always and everywhere. Some mistakes can be avoided, some couldn’t have been. One thing that stands out always though, is that one should learn from one’s mistakes. Some mistakes however can turn out to be costly and damaging unless attended to as soon as possible. Most business owners start their business with a basic understanding of bookkeeping and opt to keep the books themselves instead of opting for bookkeeping online services. This often results in the business owners making seemingly trifle, yet costly mistakes.
- Mishandling Receipts– Maintaining receipts is annoying and cumbersome; unfortunately it is necessary as the IRS needs it. The IRS can demand receipts going back years, which makes it important for you to save your receipts. The best way to store receipts today is to either scan them or take a photo and upload it to a document management system yourself. You can also try investing in bookkeeping online services. It is safe, reliable, efficient and won’t take up physical space.
- Ignoring Bookkeeping and Accounting Reports- Accounting and bookkeeping reports carry a wealth of useful information that are quite useful in making informed business decisions about the growth and development of your business. They can give you business insights, identify trends and patterns, all of which can help you spot and fix problems and overall improve your business.
- Mixing Business and Pleasure– Mixing business and personal bank accounts and transactions can harm your business. It not only makes it difficult for your in- house or bookkeeping online bookkeeper to track expenses, it also means that you will not be able to keep track of your expenses. One of the first things a business owner or entrepreneur should do is start a separate bank account for his business. Mixing business and pleasure is never good for business.