If you only have one or two employees, it’s pretty simple to write them a check for the hours they’ve worked. But as your business grows, more checks to write and benefits to manage means more opportunities for mistakes. Unfortunately, accounting mistakes can cost you big time.
Working with Bookkeeping for Wealth can help you avoid many of the most common mistakes and keep your business moving forward with as few snags as possible. Here are a few examples.
Reports With Errors
There are several types of payroll reports that you must generate and file. A bookkeeping service will know which ones you need and when you need them. Having these filed late or with errors can get you in trouble with the government.
Missed or Inaccurate Payroll
According to Employment Hero, Australian workers regularly encounter payroll errors. Unfortunately, many millions of households would suffer a devastating blow to their personal comfort if their money was late by just one week. For workers living paycheck to paycheck, receiving earnings on time means paying bills, feeding their families, and having gas to get to work. A payroll processor, while not immune to all errors, can greatly reduce the possibility of wrong or missing paychecks.
Failure to Track Expenses
Without carefully monitoring your expenses, your business can face significant setbacks. Everything from workers’ salaries and contractor labour fees to office supplies and travel to consulting fees and commissions must be tracked and recorded for submission at tax time. By not tracking these expenses, you won’t have a clear picture of how your business is doing financially, hampering your ability to make decisions.
To ensure proper monitoring, work with a firm like Bookkeeping for Wealth, so you always have an idea of what you’re spending. In addition to professional services, a proper business bank account can help you track your financials at any time. If you have yet to set up a business account, make this a priority, and look for small business banking services that will integrate with your payroll software. The ideal account will also provide features like high-yield interest, instant deposit, limited fees and even cash flow projections.
When you and your employees are disorganised, you’re likely going to spend thousands of extra dollars each year sorting through information — and when your accounting information is disorganised, it can cost you even more. Having to constantly dig through filing cabinets or unmarked folders on your desktop means you can’t quickly see details, such as how much each employee makes or how much vacation time they may have.
Missed tax deadlines
Perhaps the most pressing reason to utilise a financial partner in your business is to keep from missing important tax deadlines. Businesses, like individuals, are required to pay taxes on money earned. Failure to pay on time can leave you on the hook for penalties and fines after your missed deadline. Your accounting service can help you avoid this for all the reasons mentioned above, including keeping you organised and generating reports that are free of errors and omissions.
Article written by Courtney Rosenfeld
Courtney started Gig Spark to be a resource and the first step for people who are looking to join the gig economy, either to supplement their income or as a way to fulfill their dreams of becoming an entrepreneur.