Many business owners choose a partner who specialises in small business bookkeeping solutions to avoid these mistakes completely as well as have a fully organised part of the business they don’t have to worry about. If this is the case, the chosen bookkeeper must ensure that they are fully up to date with all tax laws and payroll tax obligations to maintain compliance. Information can be taken from Workest on FUTA tax liability for example.
No matter how they choose to do it themselves the one thing that can happen in either case is simple mistakes that cause a huge headache later down the line. That is why it is important to invest in reliable financial management tools and services such as the ones offered at https://www.fourlane.com/quickbooks-enterprise-hosting/.
Tiny Amount Receipts
No matter how small they are, they still mount up. Many business owners fail to keep these receipts which then fails to document the small deductions you are able to claim on. Simply having a dedicated small box to file them in ready to handle when the time rolls around is of much better benefit than simply tossing them away – alternatively use a receipts app where you can snap a photo quickly and keep it safe. That way, when tax time comes, it’s already there in categories and doesn’t require a day to sort through.
Similar to receipts, all expenses are just as valuable to keep track of. These need to be kept separated from receipts also, and if you aren’t given receipts automatically, be sure to request one. They also all add up, especially if you’re on or near the tax threshold.
Data Back Ups
For as much as we love it, we know technology can let us down at times. One of the most common out of your control situations that is a major frustration, even more so if your back up protocols are not set up, is loss of data. Be sure that the ability to back up your business records is in effect so it does not leave your financials at considerable risk. This also applies to non-financial information. Product photos, blog posts, logos – they all take time, and time can be money. You should also be paying a very close attention to your key metrics as these are what tell you how well each department is performing (see here for some great examples of key metrics).
You wouldn’t be the first company to not keep petty cash records in order, but money that can fly in and out of it can soon start to mount up, so these records need to be thoroughly kept in check.
No Hard Copy
The Cloud makes everything easier when it comes to storage, but even that can be unreliable at times and trusting it solely can be a risk for your business. If it was to go down at any point then all of your data could be lost forever. It is recommended that you keep printed copies or electronic backups off the Cloud, so that whatever you need is always accessible just in case of any online incidents.
Handling Your Own Books
You may view it as straightforward but even the coolest head can make mistakes if you are not dedicating the right attention and time to the process. There is always risk in doing something you are not particularly skilled in, which is why you might want to find more information on how you can employ local bookkeepers, such as bookkeeping services in Manchester. This gives you an overall safety in trusting a skilled professional to get this area right the first time.
For multi award winning small business bookkeeping solutions, contact the team at Pebbles Bookkeeping.
If you will be hiring an accountant, make sure to conduct a criminal record check. He or she will be handling your business financial data so you must hire someone trustworthy. The best way to hire a qualified accountant is through a Utah County recruiting agency.