Top Bookkeeping Mistakes You Can’t Afford to Make

by Agro Accounting CPA Accounting for Artists, Freelancers & Creative Com

Bookkeeping needs to be at the top of the to-do list for small business owners and self-employed individuals. No doubt, it might be a tedious and time-consuming task, but neglecting it cannot be justified if you want your business to be successful.

 

Bookkeeping is just as imperative for businesses as any other critical factor, and there is no place for mistakes in bookkeeping. If you tend to make errors in bookkeeping, then it may prove to be very costly for you. Fortunately, there are many accountants for freelance workers who can help you with your bookkeeping tasks.

 

This article will enlighten you with common, costly mistakes that you have to avoid in order to smooth out your financial records and returns.

 

1. Not chasing late payments

 

It is really stressful to be on top of your accounting, especially when you are waiting for your money to come in and it's not in your account.

 

You cannot keep on waiting for your payments to come in, so make sure that you establish your payment terms. It will make your customers aware of when to pay, and the request that you make for payment will not seem out of the blue to your clients. Keeping up with your books will make you streamline your invoicing so that you are paid on time.

 

2. Not keeping track of your receipts

 

There is nothing more worrisome than not keeping track of your receipts. You might lose many of your essential receipts, which may make things more challenging for you in the future when you complete your tax returns and are not able to claim many of your expenses.

 

There are many financial apps and software available that can save records of all your receipts.

 

3. Inconsistency when bookkeeping

 

If you neglect your books, then you cannot expect your business to grow at a faster pace. If you are neglecting your business, then you are not only letting your business down, but also making your business vulnerable to potential fines in the near future.

 

There are many potential mistakes you could make due to your habit of irregular bookkeeping. You might make a poor business decision based on inaccurate bookkeeping. You could also enter your expenses in the wrong category, which will make it harder to organize them later on.

 

4. Opting for a manual accounting system

 

There is no practicality in using manual accounting records to do your bookkeeping. Traditional methods of bookkeeping like spreadsheets do not offer safety against inaccurate data entry and other bookkeeping mistakes.

 

So, make sure to use reliable accounting systems that can easily stop you from making major accounting mistakes.

 

If you are unable to perform bookkeeping yourself, then opt for an Accountant Consultant for Freelancers to help you in these tasks.

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Created on Apr 19th 2021 06:01. Viewed 328 times.

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