Fraud and embezzlement are one of the biggest fears of running a business with people that you will be connected with through either a new business partner or a new employee. You may never know until there is maliciousness detected. So before this is going to happen, there are many reasons for you to dwell on the thoughts of hiring bookkeepers whether it be through virtual or actual bookkeepers. A business does not live by the rule of “as long as it makes sense,” No! And this should not be the case as having a business is not for being complacent nor being in a comfort zone, you must be more conscious of how everything goes especially when it comes to money otherwise losing a large amount of money is a failure on your part.
If you have a small business, that does not mean that you are financially safe from any mistakes but in fact the smaller the business, the more it is that you’ll have to focus on financial success that includes wealth and health of your family as well. A very small mistake can lead to a bigger damage and will eventually stunt the growth of your business plus financial disaster is going to happen in which you would never like. Regarding bookkeeping, there are several mistakes that business owners should avoid, here are the following.
- Mixing your personal and business funds- most common or perhaps the reason why most business owners fail to acknowledge the difference between personal and business funds because of the needs and wants. This is what happens if the owner tends his own business. In return, he will spend the money that only opts for the business. It would be best for you to maintain separate accounts so that you will not be able to spend the money.
- Financial reimbursement- in this case, business owners begin to get money out of their personal finances which are not a good thing to do because your business is growing and should be maximized for you to experience the life of using the money that is only meant for business. However, if you are keeping this and you are not able to reimburse yourself with the money that you need for your personal expenses, you are only lying about the personal income that you should be gaining.
- Loosing of records of transactions- losing one receipt can doom your world especially in the times that you needed it the most. Part of bookkeeping is to keep all the smallest receipt even how small the transaction it is and never loose track of your records. For more information log on to www.aimbc.com.au