Probably out of ignorance or in an attempt to save money, some business owners try to handle the bookkeeping function themselves but by so doing they make mistakes which come to haunt them later. While there are plenty of bookkeeping functions that can be done in-house (either by the business owner or by designated accounting staff), there are functions that are best handled by pros who dedicate all their time to this important function. What are some of the most common mistakes that you could make when you carry out this function in-house?
Failing to back-up documents
Some companies have huge amounts of documents in paper form and some fail to create a back up for such documents. Should an accident (such as a fire) happen, you risk losing all your documents and your accounts will be in disarray if you do not have a back up. Today, it would be unfortunate for a business to find itself in this kind of situation as there are many ways to backup documents including cloud bookkeeping.
Failing to track cash expenses
Businesses pay for expenses through a myriad of ways including checks, debit cards, credit cards as well as cash. Expenses settled through check or cards are usually easy to track but cash expenses are easily overlooked. Unless a business develops a system track cash expenses, the entries in its books will be incorrect.