There is no doubt that every business owner should look into bookkeeping to ensure that their company’s finances are well taken care of.
Unfortunately, this is one of the many areas in business where mistakes can happen. On top of that, there are also some poor habits that are practiced by many accountants and bookkeepers as well.
To ensure that everything is in working order, getting bookkeeping services in Malaysia is a good start. Or, you could read this article as I will talk about some of the bad habits that are about to ruin your company’s bookkeeping this year.
Not Having Firm Deadlines and Due Dates
One of the things that your bookkeepers should keep in mind are due dates and deadlines, especially when it comes to filing your business taxes.
If your bookkeeper doesn’t have impeccable time management skills, then you are better off hiring another one that has.
Furthermore, it is important that your in-house accounting system is up-to-date to keep everything more streamlined and easier to use.
Not Having Enough Money for Payroll Taxes
Payroll management is quite hard, which is why you need to have enough money set aside specifically for payroll taxes. This is to avoid any issues with your tax obligations and so that the IRS won’t come knocking on your door.
Not Getting Accounting and Bookkeeping Seminars
Your bookkeeper should be knowledgeable about the different accounting principles and practices. However, because of the ever-changing landscape of the accounting industry, it is imperative that they get ample trainings and seminars to keep them well-informed.
This could be another company expense on your part, but believe me that this is just one of those expenses that are well worth the money.
Hiring a Complete Newbie to Handle Jobs that Are Reserved for Senior Specialists
It is okay to hire a complete newbie bookkeeper, so long as they know how to do things the right way. But, do not expect to hire one and give them jobs that are reserved for the more experienced ones. If you force the issue, you could run into some serious problems.
Not Integrating All of Your Accounting Systems
We now live in a more technologically advanced world in that there is some accounting software that you can use to make your life (and your bookkeeper’s) easier. However, if you use different programs for bills payment, inventory, and expense management, you should take the time to integrate all of these systems together to ensure an efficient workflow.
Not Following Standardized Procedures
If your accountant follows a different approach when creating your company’s financial statements, then you should teach them how to follow standard procedures.
This is so that every report remains consistent and easier to read. By doing so, you will mitigate the risk of having some errors on your financial records.
Failing to Understand Key Accounting Metrics
As a company owner, you should be well-versed with some important accounting metrics such as profit margin, accounting overhead, and so much more. If you do not know any of the terms that I’ve mentioned (and other terms in the accounting industry), then you may want to read up on them so that you can understand better, the entries that are stipulated in your financial statements.