4 Common Challenges of DIY Bookkeeping
Typically, small retail business owners wear multiple hats in managing their business. Most of these retailers want to spend more time buying goods for the store and spending time with customers, but find that they have difficulties handling finances and bookkeeping. Issues with financial management are always tagged with costly, stressful, and even destructive impacts on the business.
Hence, here are some frequent challenges of DIY (do-it-yourself) bookkeeping which, if not done properly, could cause a retail business to fail:
- Tracking Finances
Staying on track with every receipt, invoice, expense, and cent that enters and goes out in the business can be demanding. Haphazard entries, and irregular updates to your financial records, regardless of how small the amount, can cause books to be out of balance leading to bad financial decisions, inability to get funds from banks or other sources, or paying more taxes than necessary.
- Managing Receivables and Payables
Another difficult bookkeeping responsibility is keeping a close eye on your receivables and payables accounts. Failing to collect customer payments diligently can affect the overall financial performance of your business. Comparably, overlooked payables to suppliers can damage your business image and lead to penalties or held-back deliveries.
- Tax filing
Attending to your business’ tax demands is important to avoid fines and troubles with tax agencies. However, it is unavoidable that doing bookkeeping by yourself with inadequate knowledge about taxes can lead to committing bookkeeping errors resulting in underpaying, overpaying, or missed tax filing affecting business growth and profitability.
- Segregating personal and business finances
Many retail business owners tend to mix up personal and business finances because of not having a proper system in place. Being solely occupied in managing the bookkeeping aspect of the business causes failure to record business expenses separately from personal funds. Inaccurate bookkeeping could mask an excellent financial status conflicting with the actual business’s standing.
These challenges are just a few reasons why hiring competent bookkeeping professionals is crucial and essential. Yet, some retail business owners are still hesitant to acquire one due to expectations of high-priced services.
This is why Retail Smart Guys developed it’s proficient, easily affordable, bookkeeping services for retailers!
Pro-level, highly trained, and experienced bookkeepers will assist you in getting over these challenges.
RSG executives, based in the USA, manage and supervise our bookkeepers to ensure the quality of work in the services offered.
With the guaranteed best pricing in the market, you will definitely save more money rather than losing what you can’t afford because of poor bookkeeping habits!
Best part? The first hour of setup is FREE!
Say goodbye to DIY challenges.