This Is Why I Hate Bookkeeping

Jul 31, 2017 by

We all know of the friend who had a great business idea. He or she developed that idea, drove sales through the roof and more, and then the business crashed. Production ceased due to funds mismanagement, or due to other reasons. Now, improper bookkeeping might not be one of the reasons why – but it’s pretty high on the list.

Why? Because even the smallest bookkeeping mistakes can lead to terrible consequences. First of all, there is the bureaucracy aspect: running a business and keeping the books need to follow a certain set of rules laid down by the law. But, unless you have an MBA, or you’re a bookkeeper as well as a businessman, you wouldn’t be familiar with all of them. And not being familiar with even one rule can lead to so many problems, some of which might bring your newly successful startup down.

And that’s one of the biggest reasons why business owners hate bookkeeping, and usually leave it to experts, like BAS Agent Brisbane. However, there are many different ways bookkeeping can go wrong and ruin you and your business. Below, you will find some of the problems that occur in bookkeeping – problems that are the reason why most people hate bookkeeping – and how you can solve those problems if you have them.

The amassing of clutter

We call it clutter, but its truth, all those transactions, and bookkeeping tasks that you have to do are the backbone of your company or start-up.

And therein lies the problem, doesn’t it? Many business owners, no matter how big the business, start because they foresee success for their idea. They would do everything to get it off the ground; they would drive sales and marketing. But, at the end of the month, they have to face the bookkeeping. And no one enjoys doing that. So, you tell yourself that you can do it bimonthly, or once in each trimester (quarterly), or even two times per year.

But leaving the bookkeeping tasks for later because you don’t enjoy them can create a clutter of incredible proportions. Moreover, you might be unable to solve the mess and make mistakes that will cost you your beloved start-up.

So, the more you hate bookkeeping, the bigger the sign that you need to do it more often. In fact, you should do it daily. There are two reasons for this. First, when you create a habit for bookkeeping, it will become easier with each day. Second, you will create a habit. Thus, you will avoid looking at bookkeeping as a tedious task. More importantly, you will have a very good insight into how your business is faring, instead of discovering things that could bring down your business when it’s too late.

Keeping meticulous track of each transaction

The second problem of do-it-yourself bookkeeping is the patience needed to keep track of everything. It’s a good thing today that we have programs and apps that allow us to keep track of each transaction with ease.

Well, relative ease. As previously stated, keeping track of each transaction is something that is easy to skip when you’re focused on a different task. Especially if that task is generating more sales for your business. But, here are a few tips to make it easier on you:

  • File each transaction as soon as possible;
  • When you write checks or do online transactions, it’s best to add a small comment or description about it;
  • Keep the transactions in different categories, i.e., sales, outsourcing services, employee payments, etc.;
  • File away all of them at the end of the day.

Small problems lead to big consequences

If you thought that all your problems would be solved as long as you meticulously do your bookkeeping every day, you would discover a different reality when the first problem appears. And it will appear. Bookkeeping is not an easy thing to do, but the most discouraging thing about it is that minor mistakes can have very big consequences.

The only thing you would be able to do is damage control, and that’s never a good thing in business. It would be better if you could do both damage control – and make a plan to make up for the loss (if there is any).

Lots of patience and education

Before you embark on your DIY bookkeeping journey, ask yourself whether you have not only the patience needed for it but the education as well. As we previously mentioned, you might discover a small mistake at the time when the resulting problem or consequence is impossible to fix.

There is a funny riddle about three travelers, a hotel receptionist, a bell boy and $30. If you can solve the riddle, you might be very suited to bookkeeping.

The riddle goes as follows:

Three travelers decide to spend the night at a hotel. The receptionist charges each of them $10 flat for the room. The travelers pay and retire to their room. Sometime later, the receptionist discovers that he was supposed to charge them $25 instead of $30. So, he gives $5 to the bellboy and tells him to give it back to the guests. The bellboy thinks to himself, “Well, they cannot split $5 three ways, so I’ll keep two dollars for myself.” He gives them $3 only and keeps $2 for himself. This means that each traveler paid $9 for the room. That makes the total amount $27. The bellboy took $2, which makes it $29. The question is: where is the missing dollar?

The point of the riddle is to show that proper bookkeeping not only takes patience but education as well. You not only need to do it; you need to know how to do it. And by all estimates, that is the biggest problem right there, because if you don’t know how to do it right, you’ll face many problems in the future.

Conclusion

What can we conclude from all this?

Several things, including the path to successful bookkeeping – which we’ve already established is the backbone of a successful business. So, what would the path be?

First, you can hire a bookkeeper to do all of these things for you. This is the easiest path, and the best option for you if you don’t have any experience in bookkeeping.

Second is to do it yourself, but outsource some of the tasks to a bookkeeper, so that someone with experience can keep track as well.

The third option is to get the necessary education and experience to enable you to do it for yourself and use a bookkeeper in the meantime.

Whichever path you choose, make sure that it guarantees the best outcome for your business. Maybe hiring a bookkeeper will be a serious expense on your business at the beginning, but it will be worth it once your business gets off the ground.

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