​Common Mistakes a Professional Bookkeeper Can Help You Avoid

Did you realize that nearly 66% of small businesses close after two years?

This statistic alone should be enough for you to evaluate the overall health of your small business. Pinpointing problems before they get out of control is not easy, but worth the effort you invest.

Some of the most common mistakes made by business owners involve bookkeeping. The only way to avoid these errors is by working with a professional bookkeeper.

Professional bookkeeper

Read below to find out about some of the most common financial mistakes a professional bookkeeper can help you avoid.

Failing to Categorize Expenses Properly

If you are inexperienced when it comes to bookkeeping, you are bound to make a series of costly mistakes. Among the most common is improper categorizing the expenses your business has. Failing to accurately track the income and expenses your business has will make it impossible to assess how profitable you truly are.

A bookkeeper will know how to properly file each deposit and expense based on what the tax code says. With their help, you should have no problem getting a clear picture of where your business is financially.

Not Separating Your Personal and Business Bank Accounts

Having a divide when it comes to your personal and business finances is very important. Often times, failing to separate your business and personal bank accounts can lead to a lot of confusion. If you are ever audited by the IRS, you will probably need to provide an accurate record of all business financial transactions.

Doing this can be extremely difficult if these transactions are mixed up in your personal bank account. Dealing with the headaches this can cause just isn’t worth the money you will save by doing your own bookkeeping. Hiring a bookkeeper will help you properly reconcile your bank accounts with ease.

Businesswoman counting every penny

Improper Petty Cash Management

Most businesses operate with a small amount of petty cash. Typically, inexperienced business owners will not know how to properly track their petty cash. A bookkeeper can help you set up a system to track this part of your business. With their help, you can put an end to waste and even stomp out issues related to employee theft.

Dealing With Piles of Unfiled Receipts

Does your desk look a wasteland of discarded receipts? If so, it is probably time to reach out to a professional bookkeeper for help. The last thing you want is to let these financial transactions go unfilled due to the problems this level of disorganization can cost. Most bookkeepers can get you set up on a digital receipt filing system to make this process much easier.

Making mistakes when it comes to bookkeeping can cost you a lot of money in the long run. By working with an experienced bookkeeper you can keep the financial side of your business going strong. Rushing through the bookkeeper hiring process may lead to big mistakes being made.

Going in for a few consultations with local bookkeeping professionals can help you get a feel for what they have to offer. Once you have this information, narrowing down the selection of bookkeepers will be easy.