Pitfalls of Do it Yourself Bookkeeping

One of the key areas business owners tend to target when trying to cut costs is bookkeeping. But to have a successful business, you need to know where your money is coming from and where it’s going. Bookkeeping isn’t as simple as it seems, and if done incorrectly, it can end up costing you more money. Here are some of the pitfalls of do-it-yourself bookkeeping.

Inaccurate Bookkeeping

One of the biggest pitfalls of DIY bookkeeping is doing it incorrectly. As a small business owner, you wear many hats. Your various responsibilities can often cause you to procrastinate on important financial matters, which will eventually be pushed to the side and forgotten. As paperwork, receipts, and invoices pile up, it can lead to you overlooking important details and having inaccuracies in your bookkeeping. Inaccurate bookkeeping can raise flags with the IRS and leave you vulnerable to audits and penalties. 

Lack of Experience

Keeping accurate books isn’t an easy task. To do it well requires experience. Bookkeeping is a tedious, time-consuming process. Even if you’re a brilliant mathematician or took accounting in college, you still may be missing key aspects of what it takes to keep your books up to date and correct. Even with accounting technology, you still will need to know how to properly use it for your business. 

Lack of Time

Some business owners resort to doing their own bookkeeping in an effort to save money. However, time is money for small business owners. They need all the time they can get, and it shouldn’t be wasted doing bookkeeping. Your business has the potential to thrive and grow, but it can’t do that if the owner’s primary concern is bookkeeping. Let an experienced bookkeeper do that for you so that you can spend your time doing something more productive. 

Software Learning Curve

It’s no secret that there is accounting software that you can use to keep track of your books. However, not every accounting software is the same. Each one has its own unique functions and capabilities. That means not only would you need to find accounting software that fits your business’s needs, but you will also need to learn how to use the one you select. It takes time to become familiar with accounting software, so you should look to a QuickBooks consultant for help. 

Maryland Accounting Services When You Need Them

CFO Source is your number one resource for bookkeeping, accounting, and QuickBooks services. We’ve been helping small businesses for over 20 years keep their books correct and teach them about QuickBooks software. Contact us now to see how we can help your business.