Common Bookkeeping Mistakes Business Owners Make
For most business owners, maintaining financial records and preparing accounts and taxes is one of the top priorities. However, with no grounding in accounting and bookkeeping, many of them find it difficult to efficiently manage their accounts. This prompts them to overlook the little things and commit mistakes that can have a huge impact on their business.
To avoid making financial errors that might cost you a large sum of money or your business, it’s best to enlist the services of an experienced accountant and bookkeeper to assist you in drawing out a financial plan and managing your accounts. They can help you analyze financial information so you can steer clear of avoidable mistakes and make informed business decisions.
To help you scale your business without running into financial troubles, Real Balance Accounting Services Ltd. has compiled a list of the most common bookkeeping mistakes business owners make that you should avoid.
1. Not hiring a bookkeeper and accountant
Many entrepreneurs commit the mistake of not enlisting the services of an accountant and bookkeeper to manage their financial records for them. As a layperson, you may not know of all the rules and regulations related to accounting and tax preparation. Therefore, instead of trying to maintain your business accounting records by yourself, it’s best to add a knowledgeable bookkeeper to your team from the beginning
2. Failing to communicate with your team
Communicating with your team when registering with CRA for the business number in all areas from time to time is essential. This will help you dodge late charges and penalties.
3. Not choosing a good accounting software
Gone are the days when accountants and bookkeepers would maintain their clients’ accounts using pen and paper. With so many accounting software in the market, choosing the right one to help you balance your books is essential. Ensure that you talk with your accountant before signing up for an accounting software.
4. Mixing personal and business expenses
To save time and avoid confusion, avoid mixing your personal and business expenses. Make sure that you maintain separate accounts and records for both. This will also help when filing for your taxes or preparing your accounts for an audit.
5. Failing to keep track of your financial records
Keeping monthly bookkeeping records and staying on top of your accounts will help you develop your business for success. Ensuring that your accounts are updated regularly will allow you to plan your business expenses carefully and meticulously.
To steer clear of these and other mistakes related to bookkeeping, reach out to the experts at Real Balance Accounting Services Ltd. As the provider of best bookkeeping and accounting services in Richmond, BC, we offer bookkeeping, payroll, management advisory, and tax services, and other back-office, financial services to businesses. We can help you take your business to new heights by carefully planning your capital, minimizing your tax liability, increasing profits, and improving your overall solvency. We serve clients across Richmond, Vancouver, Coquitlam, Maple Ridge, Langley, Surrey, North Vancouver, West Vancouver, Burnaby, Delta, and White Rock, BC.