COMMON MISTAKES PEOPLE MAKE WITH DIY ACCOUNTING FUNCTIONS
Accounting can be a tricky and confusing part of handling your company. Unless you have accounting experience or know someone who does, it can be an area where you feel you are in over your head. However, this should not stop you from keeping accurate records. You can handle your accounts on your own with the help of accounting software.
Accounting software offers many features to optimize your business. From invoicing and billing to tax calculations and project management, accounting software is an essential tool for your business’s financial data. It can help your business grow efficiently and continuously. However, if DIY accounting is your current method, consider the common mistakes.
To help you avoid some basic errors that could prove to be costly. AKCS Software Pro Ltd. would like to share the most common DIY accounting errors that we have seen over the years to help you avoid experiencing the same problems.
1. Not setting chart of accounts correctly
The chart of accounts lists categories your business will use to assets, liabilities, record revenue, receivables, and operating expenses. Setting this upright is essential because the list is related to your financial statements. Setting up a chart of accounts might seem simple, but if you don’t have any accounting experience, you’re going into a territory where there are many things unknown for you to discover. You’ll often save more time and money if you have a skilled professional to help you.
2. Ignoring GST coding
The GST has brought in a uniform law for large business houses or small and mid-size firms. Each one of us is directly or indirectly affected by it. We should know that GST coding is essential; many people do not realize the consequences of incorrect GST coding. It’s vital to learn the correct HSN code for the product or service to reduce errors while filing a GST return. Good accounting software can help you automate most of these things and help you reduce manual errors.
3. Trying to figure it out and do it yourself
Accounting is not for everyone. Are you good at something that not everyone else is great at? Maybe you’re a designer who is excellent at drawing and using different design software. You know the shortcuts, and you understand design basics. You’ve been doing this for years, which suggests you have shaped your skills at executing a design. The same approach goes for accounting; a skilled bookkeeper has the experience. They’ve built their skills, have the right expertise, and they’ve made the mistakes so that you don’t have to.
4. You are ignoring deadline dates
When the tax term is months away, it’s tempting to put accounting off until later, but this is a risky misstep. T4s need to be completed and filed/mailed by Feb 28, Tax and GST payments need to be made on time, credit card payments have due dates, etc. Doing so makes tax season far more manageable and prevents you from making mistakes that will require a lot of time and money to fix. Also, late payments create interest and penalties - money that needs to come out of your bank account. Money that you could better use on your business.
5. Not hiring an expert
Many people feel that they will save money by not hiring someone to help them. But the reality is you can’t do it all. That attitude directly relates to mistake #4 - you will miss payment deadlines and cost you money. Money that you could have spent hiring someone. Many people do not listen to people who are more acquainted with a topic matter. Experience is the best teacher of what to do and what should have been done better. Listen to these experts. Not letting experts help can hinder your growth. Look for an accountant that will enable you to do what you do best.
To avoid these and other mistakes in accounting, reach out to the experts at AKCS Software Pro Ltd. We have over ten years of experience setting up accounting software and training classes, workshops, and customized training. Whether you want just training or a full implementation from existing software and then training, We can help you.
For a complete list of services we provide, please click here. If you have any questions about AKCS Software Pro Ltd., we’d love to hear from you. Contact us here.