Every business experiences growing pains when initially starting out. This is especially true when hiring a bookkeeper for the first time, or starting a new account with automated bookkeeping software. Business owners who are still a little green are more prone to making errors that could end up being too costly to ignore. If you are trying to accomplish all of your early-year business goals on your own, take precautions and avoid some of the most common bookkeeping errors that cost your business, so you don’t end up losing money for no reason.
Bookkeeping Errors that Cost Your Business
Below, we’ve listed 5 of the most common bookkeeping errors that cost your business time, resources, and profits if you don’t have a secure accounting system in place.
Losing Track of Receipts
Minor purchases may not make a big mark in your books, but it is essential to keep receipts of all your transactions no matter how large or small. Not only can receipts help you stay organized while keeping track of every company transaction. It can also save your business in the event of an audit by the Internal Revenue Service. All financial activity should have a paper or digital receipt so you can always refer back to it.
Forgetting Data Backups
Any professional bookkeeper will tell you that you always need to keep copies of your financial records in the event of a data breach. Keeping physical copies of all documents may seem a little old school, but it is a good way to always have a source of reliable information. Cloud hosting is also an essential component of data backups, as it can be a secure digital space to hold on to records. Indevia experts recommend having two different backup options for complete assurance that you’ll never lose important files.
Pinching Too Many Pennies
It’s always a good practice to cut costs where feasible. However, too many new business owners make the mistake of going too cheap. There’s a time and a place to invest in the most affordable accountants and bookkeeping software. What’s important is that you consider the most crucial needs for your enterprise. Can you risk “getting what you pay for” with a cheap bookkeeper who will continue to cut costs even when it is not the best move for your company? It may be better to find someone who knows how to pinch pennies where it counts while considering the organization’s quality and organizational needs.
Falling Out of Date
Staying apprised of everything going on with your books can be overwhelming – especially when you are still establishing yourself as a new business. Get into the habit of updating your books as frequently as you can remember; it will only become more difficult to catch up once several years have gone by. This is why many emerging enterprises choose to spend some of their initial investments to hire a bookkeeping service right away. Getting a head start on your company’s accounting needs is a great way to improve the health of your business when you are just starting out.
Managing Money Alone
All successful companies are backed by a strong accounting department. It is important that a company manages its finances to the best of its ability; but that doesn’t mean you have to do it by yourself. If you are not a trained bookkeeper, the process of recording finances and keeping in accordance with tax law might seem overwhelming. You need a trusted accounting team that can help you handle your company’s books, leaving you to focus on the other parts of your business.
Avoid Costly Bookkeeping Errors with Automated Accounting Services from Indevia
As a business owner, you want to ensure that your enterprise hits the ground running on all counts. Indevia Accounting offers automated bookkeeping services along with a team of experts who can help you automate, organize, and track all of your company’s financial transactions. Trying to work through your finances alone can result in some damaging accounting errors that are increasingly difficult to recover from. Get in touch with Indevia’s top accounting professionals today to invest in an affordable, automated solution to clean up and stay on top of all finances.