As a business owner, do you feel that you don't have full control over your company's accounting and finances?
Has your accounting turned into a source of stress that affects productivity and takes your focus away from what you really want to do - develop your business?
Would you like to eliminate the burden in your bookkeeping, so that it can become an asset in your business, rather than just a "necessary evil"?
At Ageras, we've worked with over 100,000 small businesses that have been in the same situation as you. Here are 5 common mistakes that you may be making, that once resolved can help you get the best benefit from your books.
1. Doing Your Bookkeeping Inconsistently
A very common problem among small business owners is poor consistency and procrastination with their accounting.
Sound familiar?
We all know how important accounting is, but it's still something that often tends to be pushed away. You may find yourself sitting with a pile of invoices to be recorded, overwhelmed with the decision of whether you do it yourself or whether to hire an accountant.
Bookkeeping needs to be done continuously to provide maximum value to your business. If not done regularly, you will not have nearly as much benefit.
If you tend to your accounting weekly, important information can be collected quickly enough that you can use it to take action in the business if needed.
The takeaway here is to stick to a routine and to remain disciplined. No matter how boring keeping up with the books may be, it is a necessity - both for your accounting to flow and, not least, for your peace of mind.
2. Refusing To Go Digital
It's time to ditch the papers!
Digitizing your bookkeeping may seem complicated if you have always managed your finances the "traditional" way. In reality, it's a quick and easy transition, and once you've done it you will regret that you had not started earlier.
Whether you do your accounting on your own or use an accountant, there is often no reason to do your books on paper.
The benefits?
Not only is it less time consuming, eliminates paper clutter, but it also makes your invoices and transactions searchable so you can easily go back and find them.
As an additional bonus, digital accounting often comes with the convenience of allowing you to access your finances on the go so you can quickly check the status of your books whenever you please.
3. Not Using Your Business Card
Using cash or a card other than your business card when paying for business expenses creates a lot of unnecessary hassle. When paying with your business card, your bank statement will turn into a neat and complete list of the charges you need to save.
If you deviate from this “rule” too often, it is easy for things to get messy, making your accounting more time consuming putting you at risk for missing some of your transactions.
Using your business card also allows you to keep your personal and business expenses separate and organized, reducing the risk of confusion and allowing you to find your deductions much easier come tax time.
4. Seeing Accounting As a Chore - Not a Tool For Growth
Among the small businesses we talk to, we see a clear trend:
Most people do not realize the importance of keeping proper books.
The biggest reason to do your accounting is not because someone else demands it - it is for yourself and your company.
While doing your books may be a necessary evil, if your bookkeeping runs like a well-oiled machine, it is also a crucial asset for you and your company.
Through accounting, you can gain access to the figures that show the direction your business is heading and can help you make the big decisions to take your business to new heights.
5. Putting Off Hiring An Accounting Professional
We've saved our most important tip for last; to get help from a professional who is specialized in your particular industry and type of business.
If you keep your books organized, it is surprisingly affordable to get help from a professional - and it often pays for itself many times over.
If you find the right accounting partner you can not only get in touch when you have questions, but also get tips on how to streamline your business in general, how to reduce your taxes, and how to
You'll save a lot of your valuable time so you can focus on what you really want to do - develop your business.
There is certainly nothing wrong with the accounting firm "around the corner", but the odds that they are right for you and your business are very slim.
With the right accountant on your team, there's so much more than complying with laws and regulations. The goal is to create growth for your business with stable accounting routines and strategic advice that forms the basis for your big decisions.
At Ageras, we've helped over 100,000 companies find the right experts thanks to our large network of the country's best accountants.
When you contact us, we will ask a few simple questions about your needs and match you with 3 experts that we think will suit you perfectly.
You'll then receive 3 quotes sent to you which you can compare side by side.
If you don't think any of the offers are right for you, no hard feelings - our service is 100% free and non-binding.