Bookkeeping Services Offered in Chicago and Suburbs
Why Improper Bookkeeping Will Cost Your Business
Bookkeeping is a time consuming, but vital part in accounting to operate your business successfully. If you do not organize your books properly, then your business may be picked up for internal fraud by the Internal Revenue Service (IRS) during audits, where you will be subjected to penalties and fines. Proper bookkeeping will not just save you from the IRS but also stops you from falling as a victim to your business losses. If you do not have proper and regularly updated books, then you may not understand the financial standing or stability of your business. You may face late fees, paying vendors and invoices late, overdraft fees, and cash flow problems. These will lead you to finally trip down financially to the point where you may lose your customers. We know that you don’t want this to happen.
Common Bookkeeping Mistakes
Using Excel or Just Trying to Maintain Receipts
There is a very high possibility that you might lose the receipts. If you don’t maintain the books on a monthly basis, either you forget or make wrong entries on the receipts.
Relying on Accounting Software Packages
Are you a small business owner having some knowledge of accounting principles? Then you might have chosen to do the accounting by yourself using accounting software packages. There is a high probability that you might not classify all your expenses in the right category. This will cost you to lose money by not getting the right deductions at the time of tax filing.
Overlooking Sales Tax
There are lots of chances that you may fail to collect the right amount of sales tax from your customers. Either you overcharge or undercharge sales tax from your customers. This will bring fines and penalties for not charging the right sales tax.
Not Reconciling Accounts on a Monthly Basis
Reconciliation is the process of matching your bank accounts with your books. Not reconciling your account on a monthly basis or issuing payments without knowing the balance in your bank accounts may lead to overdraft fees. Go through all the transactions in the bank statements thoroughly so that you can agree that they are valid. Also, you will understand about the automatic incoming funds, which otherwise might not have come to your knowledge.
Mixing Personal and Business Expenses Together
There is every possibility that you may mix up the expenses between your personal and business accounts. You might have paid for some of the business purchases (for example furniture, stationery) using your personal account. You will lose deductions for these by not filing these expenses under the business head. Such oversight or inaction will cause loss in the advantages of utilizing the corporate liability benefits.
How Can Our Bookkeepers Bring Value to Your Business?
A lot of small business owners are “do it yourself” bookkeepers. Some are good at it and enjoy it, but most are not and don’t.
Professionals do the job fast with efficiency. Even if you have to pay a higher hourly rate, the total number of hours will be much less compared to a non-professional’s work. Another advantage is you will be paying only for the services rendered.
Our bookkeepers have no attachment or obligation to your internal employees. They look at your books based on the trusted accounting principles. This gives them an opportunity to see any indiscrepancies that might be happening in your business, which you might not be aware of. Your internal staff might be biased as they are pretty much involved in the process. It is easy for our bookkeeper to figure out an error more clearly than your internal staff as they are involved in the process of doing the job.
If you are a self learner and know accounting principles, you wouldn’t want to do bookkeeping yourself because your bookkeeping will free up your time to concentrate on parts of the business you enjoy, like utilizing valuable time in bringing in new customers for your business.
Easy Access to Other Accounting Services When It Is Needed
There may be instances where you may need the help of others for your business in relation to accounting. Our bookkeeper may have access to other accounting services and you can leverage those services through them. They can quickly solve your problems as they would have already gained knowledge about your business.
Financial Statement Preparation
Our bookkeeper can come up with complete financial statements, which can help you understand the financial picture of your business and help you to plan a budget. This will facilitate you to improve the cash flow and profitability of your business.
Looking for an affordable and professional bookkeeping services?