To help your business thrive, you need to retain financial services in Des Moines, IA. This includes tax assistance, bookkeeping, payroll and other professional services that deal in money. As professionals in this field, we discover common mistakes that occur regularly in businesses that handle these matters on their own. Here are six of them:
- Not saving receipts: All expenses above $75 a year need paper receipts. Many business owners do not develop a system for saving receipts. While you may have only dropped $3 for pens from Amazon Prime, think about the office supplies you buy through the year and you will likely exceed $75 very quickly. Keep an expanding folder in plain sight and request that all receipts (even the tiny expenses) go in that folder. If you make receipts easy to save, you are more likely to keep them.
- Lack of bank statement reconciliation: Debit card usage reduced the inclination to match transactions with bank statements. The once-monthly task is frequently skipped altogether, which causes record irregularities. If you face a tax or regulatory audit, you will have problems. Hiring a bookkeeping professional gets this task accomplished so you have clean records.
- All e-files, no paper: We all love the paperless office. There is less clutter and the new software systems make it very easy to find something. You can also divert clerical help to important tasks rather than take up an hour a day with filing. However, the paperless office is vulnerable to technical challenges, and if you face an audit, they will want paper records. Consider keeping your paperless office, but keep your paper records in storage.
- Employee misclassification: Sometimes, the difference between an independent contractor and an employee is very subtle. However, the status affects payroll significantly, and mishandling this can result in fines. When you hire an independent contractor, always have a contract in hard copy. Define the relationship clearly so there is no doubt if disputes arise.
- Poor communication: There are some businesses that assign all financial tasks to one in-house clerical worker, only to never keep that person informed. If you submit receipts three months at a time, never inform of debit transactions or write a check to pay a forgotten bill, there can be issues later if this worker is unaware of them and does not record them. Not only do you need to keep this individual informed, but you also need to enact a policy where only one person has checkbook access. Also, create a drop-off for debit receipts so they are properly recorded.
- Staying in-house: Bookkeeping and maintaining finances is time consuming. Your in-house bookkeeping may be fine for day-to-day tasks, but for larger ones, like reconciling bank statements or compiling materials for tax returns, are better off being outsourced. The service likely costs less money than you imagine and the relief to your staff will be palatable.
Accounting & Tax Professionals, PLC provides business financial services in Des Moines, IA. Contact us today to see how we can help you.