Though running a small business can be quite challenging, it can also be quite rewarding. When you are able to take a long time dream and turn it into a reality, what a joy that is. Being your own boss, making your own hours, and providing products or services that contribute to your community are all components of owning your own small business. However, outside of marketing and providing your products or services, and reaching your target audience, keeping accurate books is an absolute must do. With that said, the team here at Tax Alternatives wants to share some common bookkeeping mistakes that you want to avoid when running your small business.
Bookkeeping Is an Absolute Priority
Keeping a close watch on your business expenditures and ensuring that your finances are always in order are essential to operating a successful business. Bookkeeping should be a number one priority to all business owners. Though it can be quite time consuming, tedious and very boring, accurate bookkeeping and orderly books are the difference between your business making money or losing your entire business investment.
The team of professionals here at Tax Alternatives wants to take this time to share with any new entrepreneurs some common bookkeeping mistakes you want to be aware of and most definitely avoid.
- No Business Plan – Planning is such an incredibly important component of any startup business. A powerful business plan needs to be in place before you can actually launch your company. A strong business plan ensures that your company is ready to begin operations and is prepared to face the challenges ahead. The foundation of a good business plan includes your financial objectives and goals and your overall bookkeeping protocol. It should also include important tasks, who is in charge of the tasks, and a layout of all schedules to allow for proper checks and balances with regard to your business financials. It is important to have a precise bookkeeping schedule included in your business plan to avoid a failed business endeavor.
- Lack of Organizational Skills -Most, if not all small businesses, find themselves faced with record keeping and bookkeeping issues. It can be remarkably difficult to keep track of all your business expenses and receipts. Tracking your finances is indeed a challenge as is maintaining proper inventory and keeping employees happy and satisfied. With that said, having the right organizational skills not only will save you time, but will help to minimize stress and keep your business moving in the right direction. Technology today can greatly assist new business owners in organizing their finances and keeping track of all business transactions. Bottom line, organizational skills are an essential component of any successful business.
- A Missing Budget – Every new business starts out with a limited cash flow which means turning a profit can take a bit of time. With this thought in mind, you want to be sure that your cash flow is organized and falls within your company budget. Creating a defined budget is essential to the successful business. To accomplish this task, you should begin by taking an audit of all your business costs and expenses so as to create and put in place a proper budget. A budget allows you to keep a handle on all your expenditures and cash and helps in streamlining your cash flow.
- Not Keeping Proper Track of Petty Cash – It is important to realize the role petty cash plays in your business. Though you can use petty cash for nearly any reason or any purchase, it is not a free do as you please wallet for business owners. Regardless of what business-related purchases you are using the petty cash for, it is imperative that you keep track of any and all transactions involving petty cash. This task is simple to perform and is an absolute must do.
There You Have It
If you find that you are not comfortable or confident performing bookkeeping tasks, or haven’t enough time in the day to handle the chore, then you may want to opt for outsourced bookkeeping services that can keep an accurate accounting of all your business finances. Here at Tax Alternatives our team of highly skilled and experienced bookkeepers is steadfast in meeting the needs of all our valued clients. We are committed to providing the highest quality bookkeeping services this side of the state. We can customize bookkeeping services and offer both prices and timelines that are accommodating to our client’s needs.
It’s true that to enjoy a successful business endeavor, you must avoid the common bookkeeping mistakes we have discussed above, but you also want to leave the bookkeeping tasks to the professionals. That’s where our team of specialists comes in. For more information about our high-quality bookkeeping services or to schedule a free consultation, take time out to contact one of our staff today! We look forward to helping you turn your small business dreams into a reality by providing you with affordable, high-quality bookkeeping services to help keep your books on track and your finances and cash flow healthy.