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3 Dangers of Doing Your Own Bookkeeping

As a business owner, you likely find it difficult to relinquish certain responsibilities crucial to the success of your business. When it comes to your finances, however, an experienced bookkeeper will better serve your bottom line and provide other great benefits. Doing your own bookkeeping may not be the best option for your business. Below, learn how an insufficient time commitment, limited expertise, and inadequate software training can lead to amateur bookkeeping mistakes.

Lack of Time

While business owners are typically masters at multitasking, bookkeeping requires meticulous management. Missteps related to collecting and organizing receipts, tracking petty cash, and reconciling internal finances with monthly bank and credit card statements may appear inconsequential to your short-term financial situation. Unfortunately, such bookkeeping errors lead to future tax problems, limit your financial control, and provide opportunities for theft or fraud. Hiring a professional bookkeeper will allow you to focus your time on planning strategic goals and revenue-generating activities for your business.

Minimum Expertise

Ineffective bookkeeping systems created by inexperienced hands decrease efficiency and increase the likelihood of mistakes. Without proper procedures in place, it is easy for legitimate business expenses to fall through the cracks. Additionally, incomplete knowledge of tax regulations and poor year-end reporting could result in overpayment or, in the case of an audit, more serious troubles. When considering whether to take on doing your own bookkeeping, remember that expert bookkeepers offer organization and proper preparation for your CPA so you’ll have peace of mind.

calculator laying on messy pile of papers

Software Learning Curve

Efficient, accurate bookkeeping necessitates the use of accounting software, like QuickBooks™️. Accounting software offers:

  • an organized system to document your financial transactions
  • automation for certain processes which can limit manual errors
  • reporting capabilities

In order to get the most out of these programs, however, you need to be properly trained. The learning curve to proficiency is time-consuming but essential if you want to get the most from your choice of software. Get actionable reports for more informed financial decision-making and budgeting by enlisting the help of a qualified bookkeeper who can maintain your books with advanced accounting technology.

Given the proper time and expertise, bookkeeping offers a view of your existing and future financial situation to help your business grow. Doing your own bookkeeping threatens the financial security of your business. By working with an experienced bookkeeper, you can save time and avoid financial discrepancies, preventing the bigger problems these mistakes will eventually cause. Contact us today for a free consultation on your current bookkeeping services!