One task many business owners dread is book keeping, as this can be an arduous process for a variety of small businesses. This often happens when you exhaust all your energy on making your business success and do not have time to accommodate the rituals of book keeping.
With this in mind, what are the seven mistakes made with book keeping?
In order to prevent stalling you should set aside a clear day to sort all your book keeping. You may want to set aside an hour each week. If you do leave it wait you could find yourself missing some vital deadlines that could lead to getting penalized.
You will be astounded at the amount of people who cannot bear to look at their finances because they feel they are far too behind. There is no reason to abandon keeping track of your finances. Income and cash flow is at the heart of any business, making it crucial to book keep as it is the very foundations of your business.
Lack of Communication
There is no need for business spending accounts if your business is not clear on the budgeting system. It is important to everyone in the business notified on how much they are able to spend on a particular project, service or asset. Getting people to regularly inform you of any changes, allows you to stay informed and notified.
Countless businesses believe their financial health is actually in much better stead than reality shows. Being on top of your businesses finances is pivotal to the success of your company, being in complete control of your finances is the only way to maintain a successful business.
The ability of a book keeper is very important also. If the figures are not recorded right then you can lose track of your finances. This could lead to your business spending more money than it actually has, making it vital to properly record all transactions etc.
Keep track of all your receipts. By keeping them filed and dated in a box file that is divided by each month enables you to stay on top. Open the folder each week and insert and record all your transactions then note them on a spreadsheet. This will make life so much easier at the end of the financial year.
Finally, by having goals it will help enable to become a success. These goals need to be financially orientated to ensure that you are keeping to a budget. By keeping an eye on goals it will help enable you to succeed and keep a clear vision on how much to spend.
The Bottom Line for Business Owners
These are all common mistakes made by Small Medium Enterprises when they are carrying out bookkeeping. It is clear that many businesses are disorganized and leave it until deadline day to actually carry out any bookkeeping at all. By making sure you are organized and keep everything recordable and on file, it will ensure that you are successful.