4 small business bookkeeping pains you’re suffering from

May 10, 2023

Are you a small business owner struggling to keep your books up-to-date and organised? Do you dread tracking expenses, figuring out taxes and filing paperwork?

If any of these sound like common frustrations for you, then stick around – we’re here to help.

In this blog post, we’ll be discussing the 4 major bookkeeping pains that small businesses face on a daily basis and how they can take proactive steps to overcome them.

By being mindful of your record-keeping practices now and taking the right measures, not only will it greatly reduce headaches down the road but will also put you in a better position come tax time! So let’s jump in…

Keeping on top of your small business bookkeeping can be challenging, especially when you have to contend 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!

Taking 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?

Small business bookkeeping BAS

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 bookkeeping 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 specialised small business bookkeeper in Melbourne

You can also check out some essential facts about small business bookkeeping that every entrepreneur should know in this article.

2) Disorganised books

Disorganised books can lead to chaos in any business. Accurate bookkeeping is essential for financial success and maintaining accurate records makes it easier to track profits and losses. However, when books are disorganised it can be a difficult and overwhelming process to try to reconcile accounts.

It becomes easy to miss transactions or categorise expenses incorrectly, leading to a skewed picture of the financial status of the business. Regular upkeep of bookkeeping records ensures the business is running smoothly and there are no discrepancies in cash flow.

It may be worth considering employing a bookkeeper or implementing a digital bookkeeping system to keep everything organised and up to date. Ultimately, a small investment in good bookkeeping can save a business costly mistakes in the long run.

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 mean 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:

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, the 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 payments and due dates.

These are just some of the headaches many small businesses suffer when it comes to bookkeeping.

Small business bookkeeping BAS

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:

  • Payroll
  • BAS reports
  • Expense management
  • Software training
  • Invoicing
  • Tax compliance
  • Monthly reporting

While we discuss bookkeeping mistakes, it’s important to remember the big benefits of small business bookkeeping, like better financial management and helping your business grow.

Get in touch with our bookkeeping team today to learn how we can make your business easier. Call us today on (03) 9589 0128 or fill in this form to organise a catch-up over a coffee.

Isn’t it time you enjoyed accurate and worry-free bookkeeping solutions?