Mistake #1: Ignoring your Accounting
As a business owner, unless your business is accounting, bookkeeping is normally the last item on your to-do list. But is ignoring your company’s finances wreaking havoc on your business? According to an Entrepreneur Magazine article, “Entrepreneurs who hire accounting help usually discover they weren’t doing nearly as well on their own as they thought they were.”Here are some reasons why smart business owners hire experienced bookkeepers to manage the back end of their companies:
1. Entrepreneurs typically end up spending more money with their tax accountants at year-end due to messy books
2. Business owners risk breaking the law and accumulating hundreds of dollars in IRS fines and penalties simply because they are unaware of the numerous rules and regulations.
3. A good bookkeeper can help you grow your business by suggesting ways to reduce your taxes and increase profits.
When running a small business, bookkeeping can seem like a burden but is essential to the growth and survival of your company.