There are over 28 million small businesses in the United States alone, with more being born every day.
Although we refer to them as “small” these fledgling companies make a big impact. According to the Small Business Association (SBA) these businesses account for 54 percent of all sales in America. These small businesses also provide 55 percent of all jobs and 66 percent of all net new jobs since the 1970s.
Good work small business owners! One might argue that, in the United States at least, entrepreneurs, not giant corporations, are single-handedly driving the economy forward.
When just starting out, many entrepreneurs wear several different hats, if not all the hats, in their small business. They’re the CEO, the marketing executive, and the bookkeeper all rolled into one.
All of these responsibilities are full time jobs in other companies, but the small business owner has to juggle them all, with or without the experience necessary to do so properly. As specialists in online bookkeeping services for small to medium-sized businesses, Remote Quality Bookkeeping™ we realize that it’s hard for entrepreneurs to hand over one of their company’s most vital chores to a stranger. However, we also know how vital it is for bookkeeping to be handled by an experienced professional. Why? Because without our online bookkeeping services it’s very easy to make mistakes.
Keep reading to discover some of the most common bookkeeping mistakes small business owners make, and why our bookkeeping services for small business can help you avoid them.
1. Not Having A Bookkeeping System
As we noted in a previous blog, many first time entrepreneurs start their small business with stars in their eyes. They want to bring a product or idea to the public, with the hopes of changing lives and making some money. They’re so eager to achieve their idealistic goals that they forget about how important the daily chores like bookkeeping actually are. They think they can keep track of sales and expenses in a spreadsheet, and when that gets too complicated, they abandon their bookkeeping altogether, hoping everything will just work it out. Hint: it won’t. That’s why so many small business owners depend on our effortless online bookkeeping services.
2. DIY Bookkeeping Without Proper Training
Forgetting about bookkeeping seems bad, but attempting to keep your own books without knowing exactly what you’re doing is even worse. Bookkeeping and accounting software promises to make these tasks simple, but unless you have a basic understanding of how bookkeeping works in the first place, you’re likely to find yourself lost and confused after a few clicks. Online bookkeeping services run in our blood, letting us use our expertise to make your life easier instead of engaging in dangerous accounting software trial and error.
3. Improperly Categorized Expenses
Let’s say you’re actually doing pretty well with your spreadsheet, or your bookkeeping software. You’re tracking every dollar that comes in and every dollar that goes out. The only problem is you’re a little unclear when it comes to categorizing expenses. Deducting expenses is a boon for small businesses when it comes time to file taxes, but unless you’ve categorized them in the same way as the IRS, you’re going to be in a bookkeeping pickle.
Don’t make these bookkeeping mistakes! When it comes to tracking financials and using financial data to grow your business, our online services can save you time and money.
Request a quote or schedule a free demonstration of our online bookkeeping services today!