Trusted Saskatoon Blog | All posts tagged 'small business advice'

Top 5 Common Bookkeeping Mistakes Small Business Owners Make (and How to Avoid Them)

Every small business owner makes mistakes; it’s part of the learning process. But when it comes to bookkeeping, some errors can cost time, money, and peace of mind. After years of working with Saskatchewan entrepreneurs, I’ve noticed a few patterns that keep popping up. Here are five of the most common bookkeeping mistakes I help clients fix—and how to avoid them.

Mixing personal and business spending
It’s tempting to grab your business card for groceries or your personal card for a supply run. But mixing funds makes tracking expenses messy and taxes harder. Keep them separate—it’ll save hours later.

Falling behind on record keeping
Bookkeeping isn’t like spring cleaning…it can’t wait until “someday.” Waiting too long creates confusion and missed deductions. Set aside time each week to update your records, or better yet, let someone like me keep things running smoothly for you.

Ignoring receipts
Receipts are your proof when the Canada Revenue Agency comes calling. Keep them organized digitally or in monthly folders. Think of them as breadcrumbs that tell the story of your business spending.

DIYing for too long
Doing your own books might save a few dollars now, but small mistakes can turn into big problems down the road. Professional bookkeepers know how to keep your books compliant and efficient.

Not understanding the reports
Bookkeeping isn’t just about compliance, it’s about insight. If you don’t understand what your reports are telling you, you’re missing out on key business intelligence.

At CKH Bookkeeping & Payroll, I help small business owners in the Saskatoon area avoid these pitfalls and build financial systems that actually work for them. If you’ve made some of these mistakes, don’t worry, you’re not alone, and it’s never too late to get back on track.

Visit www.ckhbooks.com to connect with me. Let’s get your books working for you instead of against you.

CKH Bookkeeping & Payroll offers trusted, professional service that adapts to each business—ensuring accurate records, compliance, and peace of mind. Serving Saskatoon and surrounding area.

"Simplify Your Success"

Hounjet Tastad Harpham has decades of accounting experience working with clients across Saskatchewan. Their expert accounting advice is valued by clients ranging from individuals to businesses small and large. Hounjet Tastad Harpham is a Trusted Saskatoon Accounting firm and in this accounting tip, they share accounting tips for small businesses.

ACCOUNTING TIPS FOR SMALL BUSINESSES

Managing the financial aspects of a small business can be challenging, but here are some accounting tips to help small business owners:

1. Separate Personal and Business Finances: Maintain separate bank accounts and credit cards for your personal and business finances. This separation makes it easier to track business transactions, calculate taxes accurately, and maintain clear financial records.

2. Implement a Bookkeeping System: Establish a consistent bookkeeping system to track income and expenses. This can be done manually using spreadsheets or through accounting software designed for small businesses. Regularly update and reconcile your books to ensure accuracy.

3. Track and Organize Receipts: Keep a record of all business-related receipts, invoices, and expenses. Organize them by category to make it easier during tax time and to provide supporting documentation for deductions and expenses.

4. Stay on Top of Invoicing and Accounts Receivable: Promptly send out invoices to customers and clients, clearly outlining payment terms and due dates. Monitor your accounts receivable and follow up on overdue payments. Consider implementing an automated invoicing system to streamline the process.

5. Monitor and Control Expenses: Regularly review your expenses to identify areas where costs can be reduced or optimized. Look for opportunities to negotiate better terms with suppliers or find cost-effective alternatives. Managing expenses effectively can positively impact your bottom line.

6. Understand and Comply with Tax Obligations: Familiarize yourself with the tax requirements for your business, including income tax, sales tax (if applicable), payroll taxes, and any other relevant taxes. Stay updated on changes in tax laws and seek professional guidance if needed.

7. Plan for Major Expenses and Taxes: Anticipate major expenses and tax obligations in advance to avoid financial surprises. Set aside funds or create a budget to cover these expenses, such as annual taxes, equipment purchases, or lease renewals.

8. Seek Professional Assistance: Consider consulting with an accountant or tax professional who specializes in small businesses. They can provide valuable advice, assist with tax planning, ensure compliance, and help optimize your financial management.

9. Regularly Review Financial Statements: Understand and regularly review your financial statements, including income statements, balance sheets, and cash flow statements. These reports provide insights into your business's financial health, help track progress, and identify areas for improvement.

10. Continuously Educate Yourself: Stay informed about accounting and financial management principles relevant to small businesses. Attend workshops, webinars, or seminars, and consider joining industry associations or networking groups to learn from other small business owners.

Remember, while these tips provide general guidance, it's important to consult with a qualified accountant or financial professional who can provide personalized advice based on your specific business needs and circumstances.

Accounting Services:

If you are looking for a Saskatoon chartered professional accountant for your personal taxes or business accounting needs, contact the team at Hounjet Tastad Harpham today.