Keeping financial records is not much fun for most people and if you find it dull, it’s easier to lose concentration and make errors. Here are some of the most common mistakes that can be made by small businesses:
Sloppy record keeping – Organisation is a skill and some are better at it than others. It is too easy to lose receipts or lose track of small expenses and so transactions don’t get recorded correctly. When your books don’t match, this affects how much tax you pay. When you need help from Bookkeepers Witham, consider a site like https://yourbookkeepers.co.uk/bookkeepers-near-me/witham
Not having a business account – Failing to separate your personal and business banking can lead to issues. Transactions get mixed up and it’s harder to distinguish what’s been spent and paid for business purposes.
Not backing up – Since tax went digital in 2019, most record keeping will now be stored digitally. Should you have tech problems and fail to back up essential data, you could find yourself without access to this information. If you back up your data regularly, then any technical issues that might occur won’t affect your ability to continue business as usual.
Failing to organise – Filing, storing and organising your business records is time-consuming and it’s easy to get lazy or complacent and let this slip. However, without knowing the exact financial status of your business, how can you make future decisions? This is why it’s a wise move to hire professional bookkeeping services to do this on your behalf.