As a small business owner, bookkeeping is often seen as an aspect of owning a company that can be an extra overhead cost. Most business owners usually decide to do bookkeeping themselves, and often are not that successful due to the amount of time and details there are that go into properly managing the books. With having a bookkeeping professional to manage your bookkeeping, such as MBA Financial & Accounting Solutions, you are allowing yourself to have an experienced team make sure you are on top of your books while you focus on your day to day operations. Here are some common mistakes that business owners face when trying to do bookkeeping themselves:
Improper Categorization: Having knowledge of the different levels of tax according to income and expenses are often mistaken. Tracking these items in the correct categories is imperative to be efficient.
Sales Tax: If you sell a service or product, sales tax can vary from location of purchase. Not reporting sales tax or improperly reporting sales tax can result in fines and penalties.
Reconciling Bank Accounts: On a month to month basis, it is important to make sure that all your accounts are reconciled. If for any reason there was an audit, and accounts are not reconciled, there could be issues and errors that may arise from not following best practice.
Backups: Making sure that you have backups and record of all types of receipts, accounts, and statements can also keep you organized. Often this is overlooked and does result in misinterpretation of numbers on filings.
Employee Classification: Most types of business have both independent contractors and employees. Misfiling an employee can result in an overpayment of taxes which is a costly error.
Wasting Time: Wasting time as a business owner is often an issue that can be stressful and not productive. Having a professional or a team of bookkeeping professionals can help you avoid this problem and allow you to focus on the rest of your business.
The professionals at MBA Financial & Accounting Solutions having been helping business owners with their finances and bookkeeping for many years, which earned them the title of a Top 10 Accounting Firm in Los Angeles. Have our team manage your bookkeeping so you can focus on growing your business. Call a bookkeeping professional today at (800) 576-5746!