As an ex-CPA and now an entrepreneur managing several small to mid-sized business, I am still amazed at how small business owners from a non-accounting background get duped and fall into crisis due to improper bookkeeping and accounting practices. In a worst case scenario you can get embezzled by someone you trusted to handle your books, if you are not careful or your business might fall into dire straits due to improper management of business records.
Some of the most common mistakes which can bleed your business dry and should be avoided at all costs are:
1) Failing to seek professional help and trying to do it all yourself or worse seeking unqualified help from family or friends:
It can be understood that as a small business owner you are short on funds and might chaff under the idea of seeking professional help. You are probably thinking “my business is too small to hire professional help; I am sure I can manage this on my own” or “my wife/son/relative/friend has some experience in bookkeeping and can manage this for me”.
A big mistake you might not realize immediately! If you are trying to do everything for your business from taking care of day to day operations, to selling and marketing and also handling your own books despite not being qualified to do so, will create serious consequences. Multi-tasking in this manner takes you away your focus from core business. Eventually as you become more and more busy, the company hits rock bottom. How can you sincerely justify the amount of time you spend on doing tasks such as bookkeeping which can be outsourced at much cheaper rates? Your time is precious and should be spent on direct revenue generation activities. Moreover if you are not qualified to handle book in proper consistent manner, you are doing more harm than good for your business. The same rule applies when hiring a friend, neighbor or relative. Before you financial record gets too sloppy and messed up, you need to get professional help in place. Bookkeeping and accounting is too important to experiment and play around with.
Read more...www.analytixsolutions.com
Some of the most common mistakes which can bleed your business dry and should be avoided at all costs are:
1) Failing to seek professional help and trying to do it all yourself or worse seeking unqualified help from family or friends:
It can be understood that as a small business owner you are short on funds and might chaff under the idea of seeking professional help. You are probably thinking “my business is too small to hire professional help; I am sure I can manage this on my own” or “my wife/son/relative/friend has some experience in bookkeeping and can manage this for me”.
A big mistake you might not realize immediately! If you are trying to do everything for your business from taking care of day to day operations, to selling and marketing and also handling your own books despite not being qualified to do so, will create serious consequences. Multi-tasking in this manner takes you away your focus from core business. Eventually as you become more and more busy, the company hits rock bottom. How can you sincerely justify the amount of time you spend on doing tasks such as bookkeeping which can be outsourced at much cheaper rates? Your time is precious and should be spent on direct revenue generation activities. Moreover if you are not qualified to handle book in proper consistent manner, you are doing more harm than good for your business. The same rule applies when hiring a friend, neighbor or relative. Before you financial record gets too sloppy and messed up, you need to get professional help in place. Bookkeeping and accounting is too important to experiment and play around with.
Read more...www.analytixsolutions.com
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