Growing a business requires a lot of effort, but it's fun! Bookkeeping is something you shouldn't sweat because it's not as fun.
Here are some of the most common bookkeeping mistakes that are costing you time and money and how to fix them.
1. Messy receipts
One solution is to digitize them using a smart phone app or scanner and saving it in an organized folder. For digital receipts, save them directly into one of these folders.
For paper copies, use a sorting envelope/accordion. Depending on the structure and needs of your business, you may sort it according to expense categories (ie meals, office expenses, gas, etc) or methods of payment (business chequing, business visa, personal accounts etc).
2. Non-accounting software
Nowadays, cloud accounting software are a big hit, and I love the benefit of being able to sync your bank feeds into the software. Make sure you choose the right software that can generate the appropriate and accurate financial statements for you and your accountant.
3. Incorrect/Inaccurate financial statements
The best solution is to outsource the job to a competent bookkeeper and review the reports regularly. If you are doing it yourself, hire a bookkeeper that can check in on a regular basis to pick up any inaccuracies and make sure you are looking at the correct data.
At the end of the day, growing your business is your priority. To succeed, it’s important to know where your numbers are at. If you’re not reviewing your numbers regularly, you are holding back yourself from achieving the success you deserve.