09.08.2022
Bookkeeping and accounting are crucial for any business to succeed. Without regular bookkeeping and accounting activities a business will not really be able to determine profit and losses, and ending up with a mess of receipts, expenses, and no accounting books to refer to can become a nightmare.
Starting up a business is exciting and scary at the same time and there are many, or too many, things to handle, especially if one is wearing more than one hat, however, a new business needs to understand that keeping financial records up to date should be considered as a top task. During the beginning stages, startups often don’t have the financial resources needed for professional bookkeeping services. But keep in mind that bookkeeping and accounting without professional assistance often results in major mistakes.
Here are the common bookkeeping and accounting mistakes that startups tend to make:
- Hiring an accountant who is a friend or an accountant who is a family member who has not enough experience with startups and who has not enough time to dedicate to your business.
- Not knowing your accounting obligations and compliance, and deadlines for your VAT and tax returns.
- Delaying accounting tasks towards the deadline dates, with the results of failed compliance, and inaccurate sheets.
- Mixing business and personal finances due to not opening a separate business bank account, thus complicating the financial situation, and missing out on numbers. Paying personal expenses through a company account and paying company expenses through personal account will also have an impact on the bookkeeping and accounting procedures of the company.
- Not having a proper filing system for all purchases, expenses and sales, which ultimately leads to chaos and delayed bookkeeping and accounting.
- Not reviewing books regularly, thus not being fully aware of the financial situation of the company.
- Not being enough proactive in bookkeeping and procrastinating on any of the financial tasks.
Bookkeeping and accounting need not be complicated and avoiding these costly mistakes will ensure you are on the right track to success. If you are looking for professional bookkeeping and accounting services for your startup or new business, please do not hesitate to contact us. Accounting Services is here to help you avoid these common startup bookkeeping and accounting errors. You may reach Mr Conrad Meli or cmeli@accoutingservices.com.mt or on 27040903.
