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Salt Lake City Bookkeeping Blog

Is Your Small Business Making Expensive Mistakes?

Posted by Matt Roberge on Aug 18, 2015 7:30:00 AM

Have you ever made a big mistake? If not congratulations! You are the first person ever. Big mistakes often equal expensive mistakes. A small business cannot afford to make expensive mistakes. Here are some common small business mistakes and what you can do to avoid making them.

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Topics: Bookkeeping mistakes, Financial Forecasting, Business Budgeting, Small Business Growth, Scaling A Business, Business Failure, Business Pivots

Set Up Your Small Business Bookkeeping Correctly The First Time

Posted by Matt Roberge on Mar 31, 2014 7:00:00 AM

Small business owners often call us and inform us that they haven't done any of their bookkeeping; they haven't even set up QuickBooks.  This is the perfect situation because it allows us to set up the small business bookkeeping correctly the first time.  On the flip side of this story is the business that attempted to handle their own bookkeeping but made a complete mess of it and now they need our help.  This is not the ideal situation as it often takes us longer to fix the mistakes than it does to just start over.  What I have found is the most businesses have the time and money to fix their bookkeeping mess, but not to do it right.  Here is a guide on how to set up your bookkeeping correctly right from day one.

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Topics: Bookkeeping mistakes, QuickBooks Tips, Business Bookkeeping, Bookkeeping Help, Small Business Bookkeeping, Bookkeeping Procedures

Don't Let Bookkeeping Mistakes Result In Overpaid Taxes

Posted by Matt Roberge on Nov 26, 2012 6:35:00 AM

There is not a company anywhere that wants to pay more tax than they legally have to. That is why it is so
important to make sure that bookkeeping mistakes are not resulting in overpaid taxes. Not just income taxes but sales taxes, payroll taxes and any other state or local tax that relies on your financial information can be overpaid if the data is not correct. This can total up to a great deal of money. 

The one deterrent to overpaid taxes is to have a highly trained bookkeeper. Small business can sometimes have a bookkeeper that is not fully trained. There are a number of reasons this happens. When small businesses first get started they may not think they need bookkeeping help. This means that the owner or the office manager may well be doing the accounting along with their other jobs. This puts additional work on someone who already has a full time job. 

Some of the most common problem areas are:

Payroll reporting can be a problem if the bookkeeper does not understand how to enter the data correctly. The gross wages need to be on the income statement not the net paid out. Often this is missed when a non-trained person handles the books.

Fixed assets need to be properly recorded. Depreciation is only correct if the asset has not been expensed in error.  

Balance sheet accounts need to be reconciled monthly. By year end it takes a lot of work to go back through twelve months to find out a double posting was made or that the cash account has not been reconciled. Duplicate entries will throw tax calculations off.

Untrained bookkeepers often do not understand how an entry can cause so much time and trouble. Trained
bookkeepers know that a prior year adjustment is not something to consider lightly. These kinds of changes can cause  major tax problems and are not easy to find and fix.

Bookkeeping mistakes can really bring on the penalties and interest when dealing with sales tax. Knowing who to collect sales tax from and who to pay it to is what a trained bookkeeper can do without generating fines and interest. 

One of the best things a business can do to keep their taxes correct is to have a trained bookkeeper or a bookkeeping service.

 

 

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Topics: Efficient Bookkeeping, Business Bookkeeping, Small Business Bookkeeper, Bookkeeping mistakes, Bookkeeping Help

Why Does Business Bookkeeping Always Get The Back Burner?

Posted by Matt Roberge on Nov 5, 2012 7:25:00 AM

There are so many reasons why business bookkeeping gets put on the back burner. When you own a small
business you are most likely overworked and buried in things to do. You don't know if you can truly afford to hire additional help or exactly what kind of administrative help you need.

Small business owners go into business to do something they are good at and most likely really enjoy doing. Restaurants owners might love to cook and really appreciate seeing their customers enjoying the food they prepare. An auto mechanic might love to work on cars and can't wait to dive in and try to figure out what is wrong with them.  A boutique owner that loves fashion and all its accessories can't wait to help a customer find the perfect outfit for their big night.

What all these people have in common is that they didn't go into business to do the bookkeeping.  When you have a list of things to do for your business bookkeeping often fall to the bottom. In some cases it has to. For example, the restaurant owner needs a new dish for a special, food needs to be ordered and staff needs to be scheduled. The auto mechanic needs to order parts and estimates to get out. The boutique owner has ordering to do.  

This puts one of the most important parts of their business off until everything else is done and they are exhausted.  When it finally gets to be too much these owners may bring in an office person to help out. Sometimes this is a friend or family member who really has no training or expertise in bookkeeping.

What they really need is a bookkeeper or a bookkeeping service that can take this burden off them and allow them to do what they do best.  The peace of mind this can offer a small business owner is incredible. No more worrying about did I file the right form for sales tax, is my company really making money, can I afford to hire more help and are my taxes filed properly. 

One main reason that bookkeeping gets put on the back burner is that it is not easy. It takes time and knowledge. Business owners need to focus on their core business and get a qualified bookkeeper or bookkeeping service to deal with the rest. It is worth every penny to the owner.   

 

 

 

 

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Topics: bookkeeping needs, Business Bookkeeping, Bookkeeping mistakes, Bookkeeping Services, Bookkeeping Business, Bookkeeping Help

61 Days For Year-End Bookkeeping

Posted by Matt Roberge on Nov 1, 2012 7:28:00 AM

It's November 1st and you should be thinking about your business year end bookkeeping.  Why?  Because if you wait until the calendar turns to 2013 you are too late.  Here is why:

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Topics: Year End Accounting, Year End Bookkeeping, Tax Preparation For Year End, Bookkeeping Salt Lake City, Small Business Bookkeeper, Small Business Bookkeeping, Bookkeeping mistakes

Is It Time To Hire A Bookkeeper?

Posted by Matt Roberge on Sep 7, 2012 7:23:00 AM

If you are like many small businesses, you may not think you need to hire a bookkeeper. Many
small business owners have the mentality that they can do everything themselves, and it doesn’t seem to make sense to outsource bookkeeping. With software like QuickBooks, many companies try to do it on their own, but quickly find out that they are trying to juggle their time running their business while trying to keep track of the books, and wondering if they are even doing it accurately and correctly.

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Topics: bookkeeping needs, Business Bookkeeping, Bookkeeping mistakes, Bookkeeping Services, Hire A Bookkeeper

Bookkeeping Help Is Right Around The Corner

Posted by Matt Roberge on Aug 23, 2012 8:19:00 AM

Remember high school math class? For many students, it was a challenge – and for some it was a struggle almost too difficult to handle. The students who experienced trouble in math class were not necessarily unintelligent. In fact, in some cases they excelled to a superior level in nearly every other subject. These students may have gone on to become advertising executives, award winning journalists and, in some cases, business owners. However, in these courses, there was a small fraction of students for whom math was just their cup of tea. Math challenged them, yes, but it also excited them – may have even thrilled them.

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Topics: Efficient Bookkeeping, Outsourced Bookkeeping, Business Bookkeeping, Bookkeeping mistakes, Business Accounting Services, Bookkeeping Help

We Provide A Great Bookkeeping Service For Your Company

Posted by Matt Roberge on Jun 30, 2012 9:13:00 AM

Ugh, bookkeeping. It's a pretty dreaded task, but, entirely necessary in order for a business to successfully run--no matter how big or small. But sometimes, smaller businesses don't have the luxury of a fleet (a gaggle?) of bookkeepers to keep everything in check, so all of that record keeping falls into the hands of the business owners while trying to juggle running that same business. Eventually, things tend to slip, bookkeeping mistakes are made and that can actually hurt a business drastically. But, it doesn't have to be like that.

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Topics: Small Business Accounting, Business Bookkeeping, Bookkeeping Salt Lake City Service, Small Business Bookkeeping, Bookkeeping mistakes, Bookkeeping Services

5 Major Bookkeeping Blunders And How to Avoid Them

Posted by Matt Roberge on May 31, 2012 7:45:00 AM

New clients are usually bitter sweet for us.  New clients are always great because it means more income for our business.  However, new bookkeeping clients typically also come with a significant amount of bookkeeping clean up and detective work.  It's no fault of theirs; they just don't handle everything cleanly and properly.  Here are 5 major bookkeeping blunders that we often see and how to avoid them.

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Topics: Efficient Bookkeeping, Do It Yourself Bookkeeping, Salt Lake City Bookkeeping, Small Business Bookkeeper, Bookkeeping Tips, Bookkeeping mistakes, QuickBooks Tips, QuickBooks Reconciliation, QuickBooks reconciliation tips