Nowadays, things got busier than usual, and there could be potential tasks that you need to be doing but less time, and this includes bookkeeping.
By definition, bookkeeping is a systematic recording and organizing of financial transactions in a company, and even if you have a small business, there are still a lot of financial matters you need to take care of to ensure that your business will be doing fine.
There are a lot of companies that offer bookkeeping both brick-and-mortar and online companies. While it may be a good idea to just pick some bookkeeping services Victoria BC, you need to ensure that you are hiring the right company since they will deal with your finances. Here, we will be sharing with you some of the common bookkeeping mistakes that you need to avoid:
1.Not categorizing expenses correctly – there are many problems that are associated with wrongly categorized financial statements. Aside from the fact that good financial statements will help you track your profit, it will also have a big impact on your tax treatment and financial documentation.
2.Poor-record keeping – bookkeeping needs a person that is very keen on details and very thorough with data. Also, while many people think that some expenses may seem insignificant but the thing is, a missing receipt, no matter how small it is, can make a great impact and quickly escalate into bigger financial problems in the future. To make the best decisions possible for your company, you need to make sure that the data is accurate and consistent.
3.Not having a backup copy – in a digital world, it is very important to keep a copy of everything you do and have, especially when you are dealing with numbers. And all people have already experienced this: a missing file, a lost folder, and many more. This is why you need to make sure that you already have secured a copy of all the bank statements and receipts in case there is an office issue, and/or technology failure. There could also be times when the bookkeeper is working on data and there is an electrical outage. It is very critical for the business if the record and data will be reshuffled or lost in the future.
4.Not tracking reimbursable expenses – whether it be last-minute supplies, lodging, transportation, or any other expenses, that the company has, it is very important to still keep track of records and include these in your financial tracking with the receipts. This will provide you the deductions in tax after the year has ended.
5.Doing the bookkeeping yourself – in doing business, there are many things you need to do, and many tasks that need to be done. You might save some dollars if you do the bookkeeping yourself, but it will not compensate with the amount of time and effort you will be spending, and the headache if you start creating errors on doing the financial records.
If you want to be more efficient with your time and money, it is best if you hire a bookkeeper in order to keep up with the work and tasks.