Mishaps are common when you’re starting or running a small business. In fact, some business owners learn their most important lessons from them. Some mistakes, however, aren’t as beneficial, and the lessons you learn from them may not be enough to help you and your business bounce back. In many cases, those mistakes involve keeping track of and managing the businesses books on a daily basis. Today, we take a look at a few such mistakes, and how they can impact your ability to run your business more efficiently or successfully grow it.
Poor record keeping and organization
Bookkeeping is record keeping, and it takes a considerable amount of organization to get it consistently right. Unfortunately, many business owners lack the fundamental bookkeeping knowledge necessary to properly categorize expenses and accounts, or maintain accurate records continuously. This can lead to a variety of issues that impact your ability to reconcile accounts on a timely basis each week, month, or quarter. Even if you have a made-for-business software solution, like QuickBooks, you’ll need to understand the basics of record keeping in order to use the solution successfully.
Relying on outdated technology
Most business owners realize they’ll need bookkeeping software to keep their businesses running. In today’s market, keeping paper records of all your transactions isn’t just inefficient, it’s unfeasible. However, not all realize the importance of having up-to-date technology powering those solutions. For example, if you’re still relying on Excel spreadsheets, you’ll find reconciling and reporting pretty daunting. You’ll also be disappointed to find that they won’t integrate with any bookkeeping software you decide to implement.
Refusing to hire a professional
Some business owners are well-versed in the fundamental basics of bookkeeping. If you aren’t, then it’s imperative to hire a professional who is, even if you’ve already upgraded your record keeping system to an online database (like QuickBooks online). Knowing the intricacies of bookkeeping and file management will be important to setting up and maintaining your software in a way that doesn’t lead to problems further down the road. When your files need to be cleaned or more properly maintained, having a trusted professional on your team will prove valuable in keeping your business running efficiently.
Learn more about avoiding costly mistakes
Even simple mistakes can have resounding consequences, and learning to avoid as many of them as possible could be key to successfully growing your business. For more information, email us at [email protected], or contact us by calling 214-273-6599.