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3 Common Bookkeeping Mistakes and How to Avoid These Pitfalls


As beloved Disney star Hannah Montana said, “everybody makes mistakes”. Although most of us are out of our Disney days, the sentiment still applies. As many business owners know, it can be easy to make mistakes when running a company. This is particularly true when it comes to managing your financial records and sometimes these mistakes can cause costly consequences. Luckily, we have compiled the 3 biggest bookkeeping mistakes that business owners make to help you avoid them.


1) Not committing enough time 

 

No one said that running a business was easy and we understand that being a business owner is a full-time job on its own. With all the time and effort that you spend running your company, you may not always have the time to keep accurate records, reconcile bank accounts, and prepare financial reports. Unfortunately, neglecting these tasks can ultimately make bookkeeping harder and longer to complete. 


2) Not understanding the process of bookkeeping 


Let’s face it, some of us just aren’t good with finances. Unless you’re already a bookkeeping expert, many small business owners are often not equipped with the financial knowledge necessary to properly manage their bookkeeping. (Do you know what account to code your expenses to?) This can lead to complications down the road and can make bookkeeping that much more difficult.


3) Not being aware of the compliance rules and regulations


Bookkeeping is essential in ensuring that your company is compliant. However, many small business owners struggle to keep up with the changing bookkeeping regulations and requirements. Compliance issues can be costly and in the worst cases, can result in fines. It’s imperative that you and your business comply with the rules of your region.


With all that said, even with these common mistakes in mind, bookkeeping can still be a highly complex process. One of the best ways to resolve your bookkeeping stress is to outsource your bookkeeping. At STEPS, we have bookkeeping professionals who can work with you to manage your financial records. Learn more about how we can help on our services page or send us a message on our contact page. 



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