Keeping on top of your small business bookkeeping can be challenging, especially when you have to content with every other aspect of your business at the same time!
Many small business owners struggle with their bookkeeping. They’ll tell you that keeping every single financial matter organised can be overwhelming… not to mention, time-consuming!
Take a look “under the bonnet” of your small business bookkeeping can reveal all manner of bookkeeper problems. And that includes these 4 common bookkeeping pains.
Do you suffer from one of these problems?
1) High turnover rate within your small business
People don’t like being stuck in positions that they hate. And small business bookkeeping is no different!
Many of our clients come to us as a last resort after their own DIY bookkeeping proves inadequate.
What many of them will have done instead of hiring a dedicated bookie is pass bookkeeping off to a current staff member. These impromptu “bookkeepers” often suffer stress and confusion with your financial processes.
After all, not everybody has a background in bookkeeping or a brain built for numbers.
In addition to easily avoidable mistakes, it can also lead to high turnover in small businesses that hand bookkeeping off to staff who just aren’t up for it.
While they mightn’t end up quitting their job, they might request to be taken off bookkeeping duties. This leaves you with the task of finding and training someone to fill the gap, and quickly.
Needless to say, this can become a huge pain when you constantly have to upskill your staff in bookkeeping, only to have them request to be taken off shortly after!
The solution? Choose a small business bookkeeping professional.
2) Disorganised books
As with learning how to do anything in-house, internal bookkeeping comes with a bit of a learning curve.
With enough time, small growing businesses can figure out:
- Bookkeeping methods, processes and procedures
- Cash flow management
- Bookkeeping standards and expectations
- Appropriate reporting systems
However, this takes time. Oftentimes, it can mean disorganised records, unclear financial processes and inefficient processes while you wrap your head around bookkeeping principles.
This is a fairly normal growing pain. The question is, can your business sustain these while you figure things out?
If you ask us, the answer is no.
Disorganised books means that you might miss financial transactions or payment deadlines. This can lead to penalties further down the line… and if you manage to avoid a fine, you’ll still have to contend with the headache of cleaning it up.
We’ve talked at length before about the potential consequences of bookkeeping errors:
- Small business bookkeeping mistakes [Part 1]
- Small business bookkeeping mistakes [Part 2]
- Our bookkeepers in Melbourne share 5 easily avoidable bookkeeping mistakes
3) Poor time management
Sure, you might be saving money by doing your own bookkeeping. But time is money too - have you thought about how much time you’re spending on your finances?
If you don’t have a background in bookkeeping or accounting, bringing yourself up to speed can take considerable time. Not to mention, odds are you and your team won’t be able to work as quickly as a professional bookkeeper.
All of this means less time to focus on your business, and often results in taking work home.
Consistently poor time management on the part of business owners can lead to problems like missed payment and due dates.
These are just some of the headaches many small businesses suffer when it comes to bookkeeping.
4) Not finding the right bookkeeper
Getting the right person for the job can be time-consuming. Posting job descriptions, interviewing, background and character checks, training… all of these take up precious time. Furthermore, not every business owner has the technical know-how needed to conduct effective interviews.
The result is that many small business owners end up hiring less-than-ideal candidates. Needless to say, this is a pretty major problem that’s common in small business bookkeeping!
So you don’t want to be saddled with an underperforming bookkeeper, but you don’t have the time or skills to find a great bookie yourself.
The solution? Get in touch with professional bookkeepers in Melbourne such as Maximum Business Solutions!
Avoid these small business bookkeeping mistakes
Reach out to Maximum Business Solutions!
We know that bookkeeping isn’t exactly everybody’s cup of tea. We also believe that if you can avoid the problems that come with DIY bookkeeping, then the opportunity should be taken.
And that’s where we come in.
Maximum Business Solutions specialises in small business bookkeeping. We offer a wide range of services for small businesses in Melbourne, including:
- BAS reports
- Expense management
- Software training
- Tax compliance
- Monthly reporting
Isn’t it time you enjoyed accurate and worry-free bookkeeping solutions?