For any business, having a reliable bookkeeper can mean making it or breaking it. Unfortunately for some, bad bookkeeping habits have already made their mark, and it has led to some horror stories. There are plenty of bad bookkeeping practices that can negatively impact a client or business, so read on to find out what you should avoid if a position in bookkeeping is in your future.
1. Missed expenses
It might seem like an obvious one, but there are plenty of business who are losing piles of money by forgetting to claim tax on items where they are entitled to do so. For many businesses, it comes down to a lack of organisation on behalf of the bookkeeper, and the losses can be great. If you are working as a bookkeeper in a business, maintaining a strict and organised list of the items on which you can claim is crucial to minimising expenses.
2. Lazy filing
If you are lacking a comprehensive and organised filing system, chances are your business is going to struggle. Organising your files can be the difference between separating personal and business expenses and forgetting to claim on important items. Further, a lazy filing system can also lead to a late filing system, something you really need to avoid if you want to skip the associated penalties and fines. A lazy filing system will lose you copious amounts of both time and money, particularly when all of these stresses are easily avoidable.
3. Incorrect payroll practices
Keeping track of your employees salaries and making sure they are receiving the right amount is important to the morale of your team, but fiddly little mistakes can also lead to big losses in your company. A lack of understanding regarding the payroll structure in your business can mean the books get a bit muddled up, and incorrect funds can be attributed to the wrong workers. Having a bookkeeper who is confident and educated in your chosen payroll system and method can save you plenty headaches and money.
4. Lack of bookkeeping knowledge
For those starting out in business, the task of bookkeeping might seem like a simple one. For many, it might just seem like another step along the way in starting your new business, but the reality is, bookkeeping requires a whole lot of education in its own regard. There are legal rules and practices that must be followed, as well as general guidelines that will just make the whole situation a lot easier for you. Learning the details behind managing payrolls, appropriate filing, and how to cover all your bases is the best way of ensuring you don’t fall into any traps with your business’ bookkeeping.
For those looking to work in the world of bookkeeping, gaining a proper education and qualification should be your top priority. With National Training, you can gain a Certificate IV in Bookkeeping, with the whole learning process happening entirely on your terms. National Training’s educational environment caters to your needs and structures your course around the areas you need improvement on, whilst making sure the time commitments are right for you. Best of all, we currently have a number of government funded scholarships available for people looking to study a Certificate IV in Bookkeeping, so the costs of your degree could be completely covered.
To be eligible for one of our scholarships, you need to be over 18, an Australian citizen or permanent resident, and currently living in Victoria. If this sounds like you, enquire now to find out how you could get started in a career in bookkeeping, and save local Australian businesses from the common bad bookkeeping practices that riddle the industry.