Top 3 Cardinal Sins You or Your Accountant Make on Bookkeeping

There are many people out there who are doing their own bookkeeping or hiring an accountant to do it for them, however, they often struggle in accounting or make critical mistakes that will affect your business. Spending countless hours attempting to do your books so they can figure out if you're making a profit or not. The main problem is that if you're not sure how to do your books, you're going to be confused, lost, and the accountant may not even help you understand what they mean for your business.

Either you do your bookkeeping or hire an accountant to perform bookkeeping for your business. You will face a lot of challenges along the way if you continue to do your books or don't have an experienced accountant to do them, these challenges include:
1) Accuracy

  • If you're doing your bookkeeping, you're more likely to be inaccurate
  • If you hired an inexperienced bookkeeper who is not an accountant then the business owner's books will be inaccurate.

For example, bank reconciliation. What bank reconciliation does is to match every transaction according to the bank/credit card statement to prevent duplicating your transactions or missing transactions whenever you reconcile. 

 2) Understanding

  • Even if you have accurate financials, you may still not understand your financial statements or your numbers.
  • The best option is to hire an accountant to help you understand your finances.
  • When hiring an accountant, make sure they talk to you and help you understand your numbers so you can prepare for the future.

3) Planning

  • If you don't have accurate financials and don't understand your financials, then how can you plan?
  • How would you be able to budget, forecast, and make better business decisions?
  • Inexperienced accountants often don't plan for you, rather they often just hand you your books and be done with it. 

With all of these in mind, it is important to never ignore your books nor should you do it yourself, especially if you do not know what you're doing or looking at. If you have an accountant doing your books, for you to plan for your business to prosper and grow, you need to make sure your books are accurate and understandable to help you reach your goals. These three rules are the holy trinity to make your business successful. An accountant that does not follow either of these rules will only leave you clueless to what is going on in your business. Just like your business, your books are important and vital. If you try to do it yourself to save money, it will only cost you more time and money in fixing your books. 

So if you like this video, please give us your support by subscribing or sharing this video with others.

Please contact us if you need help or have any questions!

This email address is being protected from spambots. You need JavaScript enabled to view it.