Some Bookkeeping Mistakes Frequently Made By Small Entrepreneurs

Small mistakes like making food or drinks for customers might be understandable. But accounting errors will hurt your business. These mistakes are common in small companies such as coffee shops or food trucks that generally do not have a large number of employees. Bookkeepers near me is probably the keywords you can use to find an experienced bookkeeper.

The main cause of the emergence of mistakes is to run a business alone. Starting from marketing, the production process, until the accounting is done by the owner. At first, you might not feel overwhelmed because of the small number of customers.

However, over time you will develop your business and your activity will increase. At this time usually, business owners start making several mistakes. The following are bookkeeping mistakes that are often made by small entrepreneurs.

Do not separate personal and company finances
Bookkeeping mistakes that are often made by novice businessmen are mixing personal money with business money. This is not recommended, even if you have a high level of discipline. Unexpected calamities such as sick family or urgent needs can come at any time and it is at this moment that you usually think of using business money first.

This will certainly disrupt your company’s cash flow. Therefore it is highly recommended to separate personal and company accounts.

Perform bookkeeping manually
This manual method has major weaknesses, namely in terms of human error. Some examples of human errors that might occur are you forget to pay monthly bills or enter incorrect payments from customers. It’s dangerous, right?

Up to this level, you might think of looking for Bookkeepers near me to help you minimize the human errors that might occur in your company’s books.

Not just bookkeeping, in fact, we often procrastinate because we think we still have plenty of time to do other things. It is only when the deadline comes close we just start work that is already mountainous.

This is a bad habit that is hard to break, but that doesn’t mean it can’t be fixed. Familiarize yourself to do something before the deadline comes to pick up. Thus you can focus on working and provide the best results rather than hastily completing work that usually leads to mistakes.

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