5 Consequences of Bad Bookkeeping in Your Business

 

The consequences of bad bookkeeping in your business can be disastrous. Not only do you risk being audited by the IRS, but you also run the risk of not meeting any financial goals for your business. The first step to avoiding these problems is hiring a reputable bookkeeper or accountant who will take care of all aspects of your accounting and keep accurate records on behalf of your company.

The Impact of Messy Books

1. You Don't Know Your Numbers, So You Don't Know Your Business: You may not know your numbers, but they are one of the most important aspects of your business. If you don't know what is going on with your finances and how to read a balance sheet, it will be difficult for you to grow your business. So the best solution is you can hire accounting firm who can help you in read your balance sheet as well as they also can help you in manage the balance sheet of your business.

2. You Suffer Cash Flow Problems: Cash flow is a common problem for small business owners. If you're not careful, cash flow problems can be the death of your company. There are many different causes of cash flow problems, but they typically stem from insufficient funds to cover operating expenses and debt repayment obligations.

3. You Can't Strategize: If you are a small business owner, independent contractor, or sole proprietor then you know that every day can be different. It's not uncommon to feel like your company is on the brink of failure in one moment and thriving in the next. You have to wear so many hats as an entrepreneur - accountant, marketer, salesperson, CEO - and it's easy to get lost in all those tasks.

4. You Miss Tax Deadlines: The IRS has a number of deadlines throughout the year and it is very important not to miss any. If you miss one, the penalties can be severe.

One such deadline is April 15th for filing taxes which if missed means you will have to pay an additional 5% on top of what you’re owed in tax as well as a $205 late fee.

If you are missing deadlines or need help with your business accounting, don't hesitate to call our bookkeeping company today!

5. Your Expenses Have Run Amok: It's not uncommon for small business owners to have a hard time managing their expenses. But if you're having trouble with your bookkeeping, now is the time to take action before it gets out of control.

When you start noticing big discrepancies in your numbers and they still aren't adding up even after accounting for all of the transactions, that's when it's time to call in an expert.

A well-organized company is more likely to succeed. The benefits of a bookkeeping service are not just limited to the financial side of your business; they provide you with accurate information that will allow you to make better decisions on all aspects of your company's operations.

Contact us here for the Bookkeeping Services for small business.

Does Outsourcing Help My Business Save Money?

 

As a small business owner, you know that it can be difficult to dedicate time and resources to all of the aspects of your business. One area that many owners neglect is their bookkeeping responsibilities. This oversight can lead to penalties from the IRS if not addressed in a timely manner.

The question then becomes: Should I outsource my bookkeeping services?

This blog post will explore this question and offer some pros and cons as well as best practices for outsourcing bookkeeping services.

The Hidden Costs of In-House Bookkeeping Services Management

Overhead Expense: We are all familiar with the phrase “cost of doing business”, which refers to any expenses incurred by a company in order to make and sell its products. It is important for entrepreneurs to understand that there are many types of overhead expense, including utilities like electricity and water, rent or mortgage payments, insurance premiums, property taxes and even employee salaries.

Risk and Internal Fraud: Fraud and embezzlement are on the rise, and it's not just because of economic downturns. The truth is that there is no one cause for fraud; there are many contributing factors to why someone might decide to commit a fraudulent act against their employer. This post will explore some of those factors in order to help you better understand how internal fraud can happen and what steps you can take to prevent it from happening at your company.

The True Cost: Wasted Resources and Collateral Damage: The true cost of a bookkeeping mistake is more than just the money. There are many other factors that come into play, such as time spent fixing it and the potential for future mistakes to be made.

In addition, you may have lost some business because of your error. For example, if you input an incorrect invoice number or forgot to enter a purchase order number; this could result in your customer not receiving their products on time or at all and they may choose to take their business elsewhere.

It’s important that we account for these kinds of errors so that they don’t happen again – which is where our accounting services come in handy!

If are you small business owner then Outsourcing is the best for you!

Contact us here for Outsourcing Bookkeeping Services for small business.

Top Reasons Your Small Business Needs a Bookkeeper

 

Are you behind on your books? Losing track of your expenses? Do you need someone who can help you file your taxes and stay compliant? 

A small business bookkeeper or bookkeeping service can support you with everything from simple bookkeeping to offering more in-depth tax filing services and business consulting. A skilled bookkeeper will save you time and money, set you up with systems that will simplify running a small business, keep you tax compliant and ready, and ensure you are always in-the-know when it comes to your financials.

SAVE TIME

Whether you’re filing your taxes or just doing simple data entry, it is incredibly easy to make mistakes when you aren’t a professional bookkeeper and these mistakes can cost you a lot of time. When it comes time to speak with a lender, make a big decision, prepare your taxes, or just wrap up your monthly reconciliation you might end up having to undo an entire month’s worth of data entry – or likely even more due to one little mistake. 

SAVE MONEY

Small business bookkeepers and bookkeeping services can save small businesses money in many different ways. Since one simple slip-up in bookkeeping can have a huge ripple effect and cost you a massive amount of time as you try to fix your problems – you know you’ll be saving money by trusting a professional with your books from the start. 

PAYROLL

A small business bookkeeper can save you time and money by managing your business’s payroll – and many choose to use QuickBooks payroll services such as QuickBooks. With QuickBooks, you can schedule payroll to run automatically each pay period, and even reimburse employees for out-of-pocket expenses at the same time.

FINANCIAL REPORTS

Small business owners who have access to up-to-date financial statements are more confident and quick in their decision-making. Every kind of decision, from what kind of inventory and equipment to invest in, to who to hire next, is made easier when you have a recent profit and loss statement and balance sheet in hand.

CONCLUSION

Hiring a small business bookkeeper or bookkeeping service like Myaccountsconsultant will keep your books organized and accurate so you always have easy access to the most up-to-date information on your company’s finances. It is invaluable to your business to have the administrative details taken care of, so you can focus on running your business and doing the parts that you do best – or even taking a day off!

6 Bookkeeping Pains An Outsourced Bookkeeping Service Can Resolve

For many businesses, their bookkeeping causes a lot of pain. However, when handled correctly, there are many pains that proper bookkeeping can remedy. Common reasons that bookkeeping causes pain are: it is intimidating, people don't like it, and it's often way behind because it gets pushed to the back burner.

1.) Time Crunch

There is never enough time to accomplish everything in your small business, is there? People often use time as an excuse for not performing a task when they don't want to attend to it or don't know how to get it done.

If you don't find it practical to do your bookkeeping because it takes you away from more critical business tasks, then you should probably outsource it.

2.) Stress and Anxiety

When you start talking bookkeeping and taxes with many business owners, you often trigger a worried look. Bookkeeping can cause a lot of anxiety and worry for the small business owner, but for outsourced bookkeeping experts, it creates an opportunity.

Creating the proper bookkeeping system and giving a business owner a set of books that adds value will reduce their anxiety and worry when it comes to their business finances. Quite often, the key is accurately updating the books regularly. 

3.) Access to Updated Information

Another pain that bookkeeping can create is a lack of access to updated information. 

New clients often complain that the books are behind and inaccurate. Business owners complain that they don't get reports from their bookkeeper often enough, and when they do, they don't contain accurate or relevant information.

4.) Access to Relevant Information

If you don't have updated information, you likely have no idea of where your business stands, and if you don't have access to the relevant information you surely have no idea where you are going.

Outsourced bookkeeping services should not only give you a firm grasp on where you currently stand as a business but more importantly, where you are going. Your small business financial reporting should not only identify possible issues but opportunities as well.

5.) Ability To Adjust

An inability to adjust to happening changes can be a huge pain point. 

If you don't know where you are at or where you are going, you are in the wrong spot. This position leaves you incapable of making the proper adjustments to keep your business on track. 

A robust bookkeeping system will keep you fully in tune with the financial aspects of your business. This will give you the flexibility and power that you need to make quick adjustments in your business to overcome market changes and take care of opportunities that present themselves. 

6.) Taxes

Taxes are painful for a lot of businesses. If you are continually filing for extensions or have not filed taxes at all, then you are feeling a lot of pain. 

Business owners hate taxes, but too many of them take a reactive approach to taxes rather than a proactive approach. You should be reviewing your tax situation with your CPA at least semi-annually if not quarterly.

If your bookkeeping system is not kept current, then you have no way to solve your tax pain.

Fortunately for many small business owners like you, it is never too late to get your bookkeeping on track with the support of the best QuickBooks bookkeeping experts. Schedule your free consultation with us today.

Good Things To Know About Accounting Services And Bookkeeping

This will give you a basic understanding of what goes into bookkeeping for your accounting purposes.

Accounting is the preparation of financial statements. Bookkeeping is keeping track of your daily transaction, incoming and outgoing monies.

Without bookkeeping you will not know if your business is making a profit or a loss at the end of the year.

You must always keep your records straight, this aiding if there is ever a discrepancy with your books or the IRS you can find the information quickly and easily. If the IRS comes for information and you can not provide it in a timely manner they can find you.

Make sure your bookkeeping is accurate if not you could be losing money without knowing it.

You have to track every purchase you make from cars to pencils so you know exactly what your profits and losses are, along with reporting them to the IRS.

For More Details: https://www.myaccountsconsultant.com/good-things-to-know-about-accounting-services-and-bookkeeping/