Myths about Bookkeeping Services that Are Losing You Money


Bookkeeping services are about recording the financial transaction of a business, which is clearly very important! But, there are many myths when it comes to bookkeeping, or QuickBooks training. This article is going to discuss and debunk these myths, and make sure that you won’t one of the people that will be losing money because of them. It doesn’t matter if you have a small or big company, these information can be more than valuable to you. Widely held ideas that are actually false won’t have a hold of you this year!

Needing Bookkeeping Services Only During Tax Season

The most dangerous myth is that you need Houston bookkeeping services only when it’s tax season. It’s believe that your competition invented this myth! This kind of belief is especially fatal for small business. Every busines owner must understand that preparing for taxes is something you must be doing all-year-round. You need someone that constantly keeps track of what’s going in and out of your business; because, otherwise, at the end of the year, your books will be chaotic! It’s hard to organize financial transactions that come throughout an entire year.

In Houston, if you don’t want to miss any deductible expenses, or to make sure that you won’t have to pay any type of penalties, you need Houston bookkeeping services! The truth is that a bookkeeper can help you track your income and your expenses; and always keep you informed when it comes to your cash flow, what you have to pay, and who has to pay you. It’s important to know about every penny that comes and goes in and out of your company. Tax season will be harder and riskier if you don’t have someone to help you around the year. This myth is not only false, but the reality is actually completely flipped.

Using QuickBooks Means No Need for a Bookkeeper

QuickBooks is an accounting software, and while it’s extremely helpful; you still need humans around! If you are a tech expert, or an accounting expert, you might manage without any help; but that’s rarely the case for most people. As with any software, it works as well as you know how to use it. It’s not enough to know how to launch the software, you have to know how to use its features. Errors can lead to a snowball effect, and you’ll end up hating the software. Well, we should leave this myth in 2024; because 2025 must be the year of facts!

Most business owners use accounting software because of automation, and other similar features; but you need someone to make sure that everything’s going well. And, this is exactly why QuickBooks training in Houston could be of great help for you and your company. You need someone that knows what they’re doing, to check and correct any error; and to ensure that the software is working efficiently. You might want to do the QuickBooks training yourself, or you might want it for your account. It doesn’t matter who goes through this training, but it’s important that you have someone in your company that has it!

DIY: I Can Do the Bookkeeping Myself

It’s true that a lot of business owners start by doing their own books; but, it’s also true that it can get risky very fast. As your company grows, so do your responsibilities, and the volume of financial transactions that must be recorded. Of course that if you have a background in accounting, you will probably be able to handle the situation alone for a while. But, for those with no accounting background, you will need some help sooner or later. Most people think that bookkeeping is no big deal, but they only say that until their first big mistake. There are several mistakes that you can do, some of them are:

- Mixing business and personal finances – You will be surprised how often this happens.
- Misclassifying expenses – You can find a good explanation of what this means on FasterCapital.
- Accounts receivable not tracked properly – It happens very often that business owners forget to pay an invoice, which then leads to cash flow shortages.
- Not backing up data – You must ensure the safety of your data in case of a cyberattack.
- Delaying data entry – The longer you wait, the more the changes of forgetting something are rising.
- Overlooking payroll liabilities – If you are failing to withhold payroll taxes, it can results in IRS penalties.


My Business Is too Small to Need a Bookkeeper

Believing this myth is one of the first big mistakes you could do when opening a company. The situation is actually the other way around, because the smaller the business, the more important is every cent! As previously mentioned, many small business owners mix their personal finances with those of the company. You might end up over-paying on taxes because you are not aware of all of the deductions that you are legally entitled to. Also, it’s not only about the money, but about discipline too! It’s important to put your company on the right track since the beginning, and taking care of your finances is discipline.

You might find out too late if you made a mistake in the beginning. Building your company on a foundation where the accounting is not accurate, is not going to go very well. The financial health of your business is directly proportional with the length of the life of your business. In the beginning, you might want to take a QuickBooks training in Houston; but only work under the supervision of an accounting expert.

Conclusion

If you want to build a successful business in Houston, you need quality bookkeeping services. Sometimes, believing in myths is way easier than facing the truth; but, these are some of those myths that you have to take out of your system in order to take your business one step forward. Remember that your business is not too small; and it’s ok to need help!

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