Many of us dream about owning our businesses. Whether it is a cutting-edge restaurant, a trendy boutique, or a maker of hand-made jewelry, there is something intoxicating about the idea of creating your own financial empire from the ground up. And let’s face it; we all love the idea of being our own boss. The pay-off is definitely worth it. But, in order to be successful, you need to be realistic. Running your own business is not all glamour and fun.
There is the back-end aspect that needs to be done such as ordering supplies, dealing with minor repairs, and most importantly, keeping your books straight. Small business bookkeeping is a major roadblock to many new business owners. Not keeping a close eye on the books can give the wrong impression of the financial solvency of your business, which can lead to misguided financial decisions. Even worse, bookkeeping errors can get you in trouble with the law or the taxman. But, help is available if you are looking for it in the forms of Quickbooks Support Canada or a solid bookkeeper.
Here are a few of the bookkeeping mistakes made by new business owners:
Doing It Yourself- Many people like to do things themselves. They want to take the initiative and balance their own books because that is how they are wired. Understandable. But, how well do you know tax laws? Even with Quickbooks Support Canada, small business bookkeeping is not easy. Don’t be a hero. Get a professional to help and get it done right. Your business and money depend on it.
Laid-Back Attitude- Having a lenient and easy-going approach towards business can help. It helps you to be flexible. Small business bookkeeping is where you do not want to have a laissez-faire position. Keep track of every transaction to the penny and record them, no matter how trivial they seem. Don’t forget to keep every receipt!
Mixing Business With Personal- Too often, small business owners fall into the trap of mixing the finances of the business with those of their personal lives. Don’t fool yourselves; it is an easy trap to talk you into. It is also nightmare if you are audited. Keep them separate.
Small Errors- Typos; forgotten receipts; math slip-ups; missed decimal points. We all make the little mistakes and they are easily blown-off. But, little blunders will add up. Death by a thousands cuts will get you every time. Be diligent. Be careful.
Money is the blood of any business. That makes small business bookkeeping the heart of it. Keep it healthy and look deeper into it today.