3 Bookkeeping Mistakes To Avoid

BookkeepingWhen we start our own business, we do most things ourselves because of the new likeness and excitement which urges us to handle things on our own, even the things we don’t like, including the bookkeeping, and is not a task that comes easy. This is because you would not only have to deal with getting someone who can perform the tasks that you need to be done like keeping your accounting books well-maintained in an accurate manner because you think you have a grasp of the basics of businesses.

Here are 3 most common bookkeeping mistakes small and new businesses often make, along with our handy suggestions about how to avoid them for long-term business growth. 

Putting off Bookkeeping Process:

Sounds fun, but it’s not! If you’ve decided to handle those looming and deadlines tasks, then better be prepared for the consequences. Sooner or later, there will be an overwhelming sort of tasks which you need to update. The things can go even worse when you won’t have a clear idea of what’s happening in your business. And soon VAT and tax deadlines are looming, and you aren’t ready. 

Do’s:

The best thing you can do is put some effort to update your financial information in your dairy and check that you understand what your figures are actually telling you without doing minimum fuss and duplication.

Mixing both business & personal spending:

Thinking of mixing both business & personal spending is actually not a good idea to consider. It’s easy to lose track of what you have done so far as it creates a mess and confusion towards you, and soon you can find yourself out of nowhere. 

In just a few days you will begin to struggle to remember all your relevant bank or credit card statements which were necessary for your business, and wasting a lot of time is another task which will frustrate you from inside. 

Do’s:

Our recommendation is to go for a separate business credit or debit card so that you will always have a clear view, record and track of your business-related spending. Another benefit which you will get is it helps to avoid tax return mistakes.

Intricate Cash Flow:

Not collecting your receipts and purchase invoices might lose you a clear view of tracking your business cash flow. Not correctly coding all your income and expenditure creates unuseful reports for you and your business which will devastate business in the long run.

Do’s:

Well, it is advised to always keep an extensive record for your business receipts from the biggest to even the smallest expenses as it will help to reduce your VAT and tax bills. But it may come handy during scrutiny as HMRC could ask to scan your receipts reports. 

Having a Business, why don’t you hire a Bookkeeper?

Bookkeeping

Every company or business has a mission and once it is sorted out or vision are tweaked, then big tycoons faced with the issue of implementing the new plan and sometimes that requires extensive help from accountants or bookkeepers.

For the purposes of controlling business, the following will serve as why having a bookkeeping services is vital organ for your business.

According to us, Bookkeepers are a rare breed of individuals, and are used by every organization’s – known for their skills for the recording and managing of financial transactions, and is basically the part of the process of accounting in business. But if they do not possess superior skills, they can drop a corporation in a very quick order and guess what things are messed.

Therefore, this person is vitally important to any organization and if you are wishing to have a more than one, then this is overall good just for the bright future in the world of business.

Now, what duties they actually offer us to surf the business with ease, let’s find out:

  • Maintenance of Basic Accounting Records
  • Handling the Invoices of Vendors and Customers
  • Balancing the Cheque books and Reconciling Bank Statement
  • Maintenance of Payroll Records and Payroll Files
  • Maintenance of Receivable Accounts
  • Making Relevant Ledger Entries
  • Preparation of Sales Tax Reports
  • Prints Preserved Financial Reports and Statements

Well, there are a lot more and it surely depends upon what kind of business you are having. If you are having a small business, still there is a chance that you require bookkeeping and it’s better to hire one for your business.

If you want us to do bookkeeping for your new or existing business, H&T Accounting services offer premium bookkeeping and accounting services in Mississauga, Toronto.

No matter what your business says or what kinds of services you are serving we have everything to provide you with every record where our professional’s accountants use standard working techniques to prepare journals, ledgers, and compliance reports and schedules and a much more for you.

Ask yourself why you need to hire Bookkeeping Experts for Business Accounting Management?

Starting a business sincerely require extraordinary enthusiasm, passion and pursuance, and after you’ve legally registered your business, you’ll need someone professional accountants who can lean on when making day to day Accounting and Financial Management decisions in Mississauga. It is something like you have to learn from it or hire a professional accountant when you are running a business.

For business people, Accounting Services is seriously a crucial part of any successful business, as it increasingly requires managing all the decisions that are highly relevant to both business and owners for Business Startups.

The records are all your accounting documents and these documents must be organized differently to simplify things over time with us.

However, controlling business is a never-ending process as it is coupled up with increasing to-do lists.

Your Bookkeeping services can be simple or complex depending on the nature of business. But when you choose to hire someone, you still need to be well organized.

Ask yourself whether you need bookkeeper or not

Strong foundation:

Bookkeeping practices are no doubt the strong foundation of every successful business startups, and surely, accounting should be your preferred responsibility if you want to build a strong financial foundation for your business. It could save you time, money and frustration in all aspects simultaneously.

Manage your financials accounting status with us to ensures that your records are perpetually up-to-date whether it is for tax preparation, loan reviews or other business needs.

Track performance:

Poor bookkeeping is apparently disastrous as we know if it is not done properly or in an efficient manner, but having professional accountants can save you from all of them, as it helps you make the right decision in an attempt to avoid improperly keeping financial records.

Be organized:

Staying organized is the most critical step to be efficient and accurate in accounting since it organizes your business accounting records when determining what to preserve and how to quickly find information when you need it. The business generates paperwork and that quite obvious, but it becomes overwhelming when it is not under control.

With us, you can keep track of accurate sales, tax and expenses into our records as they occur.

Be on time with CRA:

One of the reasons why it is necessary to carry out the accounting of your business is for compliance with the CRA. Whatever records we are creating or managing regarding any business, they are the real authority to examine you.

For this reason, hiring the bookkeeping experts makes sense so that they can help you avoid fines and penalties for late payments.

Take advantage of upcoming future opportunities and be updated on sales and income tax with our and also on the cash your business will demand throughout the month, quarter and year.

4 Tips for Improving Your Small Business Bookkeeping

Are you in one of those business owners who love putting records all in one place just for audit purpose? Maybe some people do, but as a small business owner, you know that your finances are a top priority and therefore you need a bookkeeping expert to maintain records of financial transactions by establishing accounts, posting transactions, ensure legal requirements compliance and payroll.

It hardly matter what you believe about bookkeeping services as it is one of those big responsibilities no business can ever avoid or neglect in today’s world or coming future.

Yes, your business’s books are records of track and path how well you and your business is doing, and therefore a bookkeeper professional is required for maintaining bookkeeping processes to keep everything in stable state.

Are you looking for bookkeepers in Mississauga to keep your company’s financial accounts management in healthy shape? If you’re wondering where you’ll find them, H&T Accounting Experts will help you throughout the process, but before that stare at some 4 tips to make bookkeeping easier for the small business owner:

Separate business and personal finances.

Believe it or not, this is one of the biggest reasons why many people tend to go for hiring bookkeeper in Mississauga, Milton, Oakville and Brampton. It is about protecting your private data and your wealth from the threat of financial liabilities that can sometimes create a serious risk to you and your company, keeping work and personal finances separate.

Conduct Financial Checkups.

Putting off either or neglecting your bookkeeping for your business might end up with bouncing of checks and overdue for long run if delayed. Go and check over your books weekly to make sure everything is in good shape as neglecting your bookkeeping, create more problems. More delay more VAT and tax deadlines continue to threaten your business.

Avoid Tax Pay Deadlines.

No one wants to get caught and rubbed their ass by tax auditors. To avoid yourself getting caught and want to get away from this spot, plan and keep your money aside for a while and be safe for any foreseen tax bills. Paying on time allow you to be reputed so that you don’t have to face a huge amount of fines. With the bookkeeping process, never miss a deadline as it keeps track of payment before it is ready for due.

Review it Monthly or Quarterly.

When each month ends, take a deep look at your bookkeeping and accounting reports just to assure are they not losing the track. It’s really easy to lose track of what you have done, and you can find yourself in nowhere situation. Taking some sort of help and advice from a pro accountant might help you gaze at your business with safe eyes so that you can better be prepared for future expenses for your business.

Grab some help from us.

Ignoring the rosters give us pain and burn and is one of the costliest mistakes we ever make when our business is running in the initial stage. H&T Accounting Services in the Greater Toronto Area (GTA) can help you with all aspects of small business bookkeeping and accounting and even recommend how you can expand your business in the long run. Engage the assistance of a great bookkeeper and if you have don’t, go ahead and find one.

Why Bookkeepers use Bookkeeping for Accounting Management System?

Bookkeeping Services

In the context of business, bookkeeping services is required for the foundation of the business organization accounting system where Bookkeepers are liable for recording, analyzing and maintaining the financial transactions of the respective business firm properly and systematically. Purchases, sales, receipts, and payments transact by an individual or an organization is one of those transactions.

 

In day-to-day basis, recording of the financial transactions and relevant information about business has become necessary. It clarifies that the existing records of the business individual financial transactions are accurate, up-to-date and authentic.

 

Top 5 Bookkeeping Tips:

 

Keeping assets separate:

Incorporate business affairs, always try to secure your business finances in a separate place because the business is viewed as a separate legal entity. Thus, keeping your business finances isolated reduces your legal liabilities and helps you manage your tax and business bills more efficiently.

 

Filing tax compliance reports timely:

Taxpayers generally get issued notices due to delay in filing an income tax return, calculation errors or not reporting income correctly and so on. File your ITR using the correct tax return to avoid getting legal notice of faulty return or levy of charges.

 

Organize your records:

Records are all your accounting records and other financial information documents. Always plan a method for handling all your paperwork reports by entering your bookkeeping data in batches of records so that you can actively manage where the cash is flowing from.

 

Audit your tax records:

A tax audit defense examines your company’s financial records to verify its accuracy. Try to keep all your receipts at the place where it needs to be kept, no matter how small or big the amount is; also make sure whether they are worth legible or not. Deposit your cash into the business in such a way that in future you can prove what was taxable and what the loan was.

 

Don’t run business into debt:

No cash to cover up the expenses? Try to run your business on your existing cash flow and figure out where to cut down your expenses and also not to offer any sort of credit to your existing customers as it helps you save some much amount of money for your future business.

 

At H&T, we offer premium bookkeeping and accounting services for businessperson to prepare journals, ledgers, and compliance reports or schedules for your firm in Mississauga, Toronto.