Congratulations you’re a CEO! A “Chief of everything and everyone officer” that is.

We know that you are super busy taking care of customers, and dealing with employees and vendors.

As the “CEO”, you’re also tackling your own bookkeeping.

If you are doing your own books, did you know that there are many misconceptions about record keeping?

We’ll share with you the 4 lies business owners believe about bookkeeping.

1. Accounting software can do my Bookkeeping for me.

This is not true, actually. Your accounting software would not perform bookkeeping on your behalf There are several automated processes in accounting applications, such as automatically integrating them with your bank and credit card accounts.

However, these software programs still require regular inputs and checks from your end. Keeping up a daily routine of bookkeeping will assist you immensely in staying organized and paving your way to profitability.

2. Bookkeeping is nothing more than data entry.

Bookkeeping nowadays is a lot more than manual data entry. It does not involve a standard process of entering the numbers. As a matter of fact, businesses can now get rid of manual data entry by automating the process or make use of third-party software applications to manage the bookkeeping process.

For instance: Making use of mobile apps, you can take a picture of your bills and invoices. The app would scan the data and then upload the same on the accounting software. There are applications available for invoice management, payroll processing and everything in between them.

3. Bookkeeping is only required at tax time.

Bookkeeping is not just meant to be done at the time of taxes. Your business requires accurate financial reports in situations like:

• Applying for a loan

• Making sound financial decisions

• Handling cash flow

Do not make use of the tax season as an excuse to work on your books just that single time during the year. Bookkeeping, when done on a regular basis, can be a source of valuable financial reports that you can obtain by managing your books.

4. I'll do it myself and my accountant will check it.

In case, you have made up your mind to do bookkeeping on your own without taking help from a bookkeeping service provider or choosing to have an accountant review your work; you must ask yourselves these questions:

Are you an expert in bookkeeping? You understand your business the best, however, you possibly don’t understand bookkeeping that well. You may not have sufficient bookkeeping knowledge, which may result in pricey errors at a later point of time. Nevertheless, in case you are managing your own books and it seems daunting, it’s a sign that you must outsource bookkeeping to an expert.

Will it cost you more to have your work reviewed by an accountant?

In a lot of situations, it would be a better choice to have an accountant do bookkeeping as compared to having them review your work. Some accounting professionals may not even agree with fixing your errors. 

Whether you choose to do your own bookkeeping, ask a relative for help, or hire a professional, don’t fall victim to the 4 lies business owners believe about bookkeeping.

Ask yourself the right questions so you can make the BEST decision for your business.