It’s an unfortunate fact, but it’s all too true: a lot of business owners and entrepreneurs make the same mistakes or errors in bookkeeping, especially during the early stages of their operations. This comes about due to factors like not enough knowledge about the proper procedures in accounting. And even if you don’t have the money, desire, or time to study accounting, you can still avoid certain pitfalls as a layperson responsible for their books if you know what the most common mistakes and errors are. So what should you know about common mistakes in bookkeeping – and how to avoid them? Here’s an in-depth look.

  • Doing it all on your own

Whilst the management of money is a critical responsibility; you don’t have to tackle it all on your own. If you are not that strong when it comes to accounting and tax law, it’s even more advisable to rely on an expert to handle it for you (such as the central London accountants from Griffin, Stone, Moscrop, & Co). You can delegate this particular task to someone who is professional and experienced and has the proper qualifications. They can then deal with the job appropriately and even help you avoid missing deadlines and facing hefty fines or penalties.

  • Going for a bargain

Of course, as a business owner, one of your priorities is to save money. But there’s a point when being too frugal can actually work against you – and even have you end up paying more. You get what you pay for, which rings true with an accountant and accountancy service as well. That said, be sure to invest in your accountant or accountancy service rather than just opting for the cheapest service. Additionally, do ample research prior to spending your hard-earned money on other services as well as items that will only last for several months. When you purchase items such as furniture and equipment, software, and so on, it’s always better to choose a moderately or reasonably-priced item rather than a cheap, flimsy item that won’t give you value for your money.

  • Not tracking receipts for small purchases and expenses

Let’s face it – even the most careful and meticulous entrepreneur will sometimes forget to track or save receipts, especially for small purchases and expenses. And whilst it doesn’t seem to be such a ‘big deal,’ this can all add up eventually and cost you money in the end. No matter how minor, tracking all your receipts can also help you save if you would like to claim your expenses since you need proof to back you up.

  • Not reviewing your own books

Even if it’s a good idea to delegate your bookkeeping and accounting tasks to an expert, it still pays to review your business’ books once in a while. You wouldn’t want to give someone access to all your records and not have a check and balance system in place. The fact is that some small business owners and entrepreneurs assign the business books to a friend or family member, only to find out after a few years that they’ve been regularly scammed. It goes without saying, actually: make sure you review your business’ books regularly, particularly when it comes to cancelled cheques, your ledgers for petty cash, and the like.