common bookkeeping mistakes - 10 mins
TRANSCRIPT
Debbie Winn
P3 Service
COMMON BOOKKEEPING
MISTAKES
Debbie Winn
Certified QuickBooks ProAdvisor
2011, 2012, 2013, Online
15+ years bookkeeping experience
MBA from University of Phoenix
WHO WE ARE
Introduction
No Bookkeeping System in Place
Combining Personal and Business Finances
Not Doing Bank Reconciliations
Not Protecting Your Data
Wasting Too Much Time
COMMON BOOKKEEPING MISTAKES
Most entrepreneurs start their companies because they’re good
at something, whether it’s producing a tangible product or
delivering a useful, high-quality service. As they quickly find
out, though, there’s a lot more to running a successful business
than just providing products and services.
Every Small Business is Required to “Keep Their Books”
20 Million Small Businesses Don’t Use Accounting Software
4 Million Small Businesses Use QuickBooks
OVER 25 M ILLION SMALL BUSINESSES
The biggest mistake made early on in a small business is not
using a proper bookkeeping system.
Maintaining accurate records on a monthly basis saves you time and
money on your taxes.
It can also provide the necessary documentation in the event that you
are audited.
Without accurate reports, you cannot make informed decisions in
running your business in the best possible manner.
QuickBooks is the #1 software used by small business.
Own 80% of the market
NO BOOKKEEPING SYSTEM
Keep personal and business finances separate at all times,
regardless of your company's size.
One of the first things new business owners should do is open a
business checking account and deposit all business income and pay
all business expenses from this account.
If you do take money out, you should record it as Owners Draw. This
is an equity account that won’t affect your Profit & Loss statement.
COMBINING PERSONAL AND BUSINESS FINANCES
Reconciling your business ' books with your business bank
statement every month is one of your most important
accounting duties.
Compare your books with your bank statement and make sure there
are no discrepancies.
If there are, contact your bank right away to get them resolved.
Doing this on a monthly basis helps ensure that accounting errors are
caught and corrected quickly before they result in major financial
problems.
NOT DOING BANK RECONCILIATIONS
Data Backup
QuickBooks should be backed up every time you make a change to
the file.
Backup should be kept on a CD, USB drive and at a different location,
or in the Cloud.
Password Protection
Even if you are the only user, password protect your file.
NOT PROTECTING YOUR DATA
Although we all know that time is money, many business
owners do not put enough VALUE on their time .
Many business owners try to do bookkeeping themselves or do not
have the professional help they need.
Your time could be better utilized by managing and growing your business.
A bookkeeper will know what to record, how to record it, and any
accounting changes that affect a business.
WASTING TOO MUCH TIME
A bookkeeper with the knowledge and skills necessary to complete your books quickly and accurately is crucial to small business success.
Leave the time-consuming task of bookkeeping to a bookkeeper. This saves you time, freeing you up to focus on growing your business and generating profits.
Bookkeeping can get very technical and complex. The money spent to hire a trained bookkeeper, even on a part -time or contract basis, will usually come back to the owner many times over given the time savings and all the mistakes that will be avoided.
OUTSOURCE YOUR BOOKKEEPING
QUESTIONS?
