Quick! What is your gross profit margin? If you aren't sure about this or any other key performance indicator in your accounting data, put this as your #1 bad bookkeeping habit to remedy this year. After all, you can't budget and forecast with a guesstimate.
Have you sent out all of those invoices? They're terrific up until the point you fail to keep track of whether or not you got paid. Sending invoices are only one piece of making sure you have enough money to be in business, however following up with regards to payment is the other half of the battle--if your cash flow doesn't show it, you have a problem.
Whether you get a robust array of reports or simply a review of your balance sheet and P&L each month, make sure you get the proper report every month, every time. By standardizing reports and establishing expectations, you will have a better time tracking and analyzing key financial data.
All that pretty data you painstakingly input into QuickBooks? Guess what? It speaks to a lot of other platforms as well! If you're utilizing programs for expense management, inventory or bill payment (among others), make sure you successfully integrate your platforms, so they run smoothly together. Data synchronization will reduce the chance of error as well as improve your time management and efficiencies.
The IRS won't care if you saved a few dollars by hiring someone who simply didn't know enough about doing things the right way. It's much more beneficial for your company to spend the extra thousand dollars to hire a professional that delivers high-quality work, rather than save money, and deliver a poor financial report that could mislead your business.
With constant changes in everything from your accounting software to bookkeeping regulations and best practices, staying on top of current rules and technology is a must if you want your bookkeeping to remain impeccable.
Are you trying to do payroll processing in-house? If so, you might want to reconsider when the IRS comes knocking at your door to make sure you're doing the right thing in the ever-complicated world of payroll management.
Always wondering where something is? Not sure when your report will be delivered? Lacking concrete deadlines and due dates is a habit sure to keep your bookkeeping late and inaccurate, which in terms of a small business, could mean the end of your company.
Maybe you have stacks of invoices on your desk and maybe your bookkeeper isn't the most organized. Either way, this style of bookkeeping is sure to have you missing deadlines. At the very least, make an effort to buy a scanner this year and get started on a virtual filing cabinet, preferably not such a messy one, in order to keep everything in an organized and presentable manner.