Believing These 5 Bookkeeping Myths? Your Biz Deserves Better!

Wanna hear a secret ???

One of the best-kept secrets to true growth and freedom in your business is...drumroll, please...

?

Bookkeeping!

?

?

Totally caught off guard, right?

I’m sure you’re 100% surprised that a bookkeeper would say ‘bookkeeping’ is one of the doors to business growth. Guess what, my first business failed because I didn’t understand the power of knowing my numbers; I was spending more than I was making, and it was too late by the time I figured that out. That's one of those lessons that sorta sticks with you.

Maybe you’re like other small business owners I’ve chatted with and are a bit puzzled by what bookkeeping is all about.

Don't worry—you're not alone! Many people believe bookkeeping myths that just aren't true. So many myths about bookkeeping get in the way of business owners really seeing its value, and this can hold your business back, like trying to run a race with a heavy backpack. ??♂?

Today, I will clear up some confusion by busting some common bookkeeping myths that might slow your growth. Ready? Let’s go!

?

Myth #1: Bookkeeping Is Only Important at Tax Time

Myth: "I only need to think about bookkeeping when it's time to pay taxes."

Truth: Bookkeeping is like that loyal friend who’s there for you all year long, not just when it’s crunch time for taxes. ?? Keeping accurate financial records isn’t just about filling out forms come April. It’s about knowing where every dollar is going, whether it's helping you grow or pulling you down.

When you keep up with your books year-round, you can:

• Track cash flow - knowing how much you have in the bank at a given time is only part of the picture. You NEED to know your expenses and net income. Gotta be sure you can keep the lights on!
• Make informed decisions - no more guessing if you can afford that new coffee maker for the office.
• Spot problems early - find and fix issues before they become big troubles. Think of it like finding a pothole before your car hits it!

Why It Matters: Imagine playing a game of golf but only checking your score at the end. You’d have zero idea of where you stood with the other players or what you might need to do to adjust your game to come out on top.?

Keeping up with bookkeeping lets you see your "score" all year long! So, please don’t wait for tax season to take care of your books.

Myth #2: Small Businesses Don't Need Bookkeeping

Myth: "My business is tiny; bookkeeping isn't important for me."

Truth: No matter how small your business is—even if you're just selling lemonade on the sidewalk—tracking your money coming in + going out is HUGE. ?????

Proper, accurate bookkeeping helps you:

• Prep for future taxes - make sure you’re tracking what you need to set aside for tax payments.
• Stay organized - know who owes you money + who you owe money to.
• Plan for growth - if you don’t know if you’re truly profitable, how can you ever set goals for growth? Short answer: you can’t.
• Follow the rules - did you know the IRS requires you to keep accurate records? Solid bookkeeping helps you keep everything legal and avoid undesired visits from the IRS.

Why It Matters: Even if you think you’re “too small” to need bookkeeping, think again. Your small business deserves big-time financial attention!

Myth #3: Accounting Software Does All the Work for You

Myth: "I have fancy software, so I don't need to worry about bookkeeping."

Truth: Software can help with the basics—it can do a lot, but it still needs a human! Yes, the software can record what you enter, but it won’t catch every mistake, understand all the tricky money rules, tell you when something looks fishy, or give insights into the numbers.?

PLUS, you have to keep up with your bookkeeping, which many small business owners struggle with (there’s just no way to fully automate accurate bookkeeping).

On the other hand, a professional bookkeeper is like the captain of your financial ship. ??? They steer it, make sure it stays on course, and keep an eye out for icebergs (like missed deductions or red flags in spending).

Here’s what a good bookkeeper can do that software can’t:

• Catch and correct mistakes - because the software doesn’t know if you accidentally typed an extra zero!
• Interpret numbers - numbers don’t lie, but they need a good storyteller to understand what they’re saying.
• Ensure compliance - because we all know tax rules change faster than a kid's mind on ice cream flavors. PLUS, a mindful bookkeeper will collaborate with your tax pro to keep everyone on the same page.

Why It Matters: Think of software as a tool, like a paintbrush. ?? In the hands of an artist (your bookkeeper!), it can create something amazing. So, let the software do the number-crunching, but leave the insight and strategy to a real person who’s invested in your success!

Myth #4: You Can Fix Bookkeeping Errors at the End of the Year

Myth: "I'll fix any mistakes when the year ends."

Truth:? Waiting until the end of the year to fix errors is like leaving a leak in the roof because “you’ll get to it later.” ??? By the time you get around to fixing it, it’s a bigger, costlier problem than needed.

Keeping up with your books monthly or even quarterly means you can:

• Tidy up regularly - keep everything neat + up-to-date and avoid a stressful, mad dash come tax time.
• Avoid surprises - catch issues when they’re small (and fixable) instead of letting them turn into a huge, costly mess.
• Save money -?save yourself the headache of potential penalties or fees for filing taxes late OR paying for a massive clean-up on your books.

Why It Matters: Cleaning up a little mess is more manageable than tackling a giant pile later. Like homework, it's best not to leave it all until the night before! Dealing with issues as they come keeps your financial picture accurate and your stress level low.

Myth #5: DIY Bookkeeping Is Always Cheaper

Myth: "Doing it myself will save me money."

Truth: Sometimes, trying to save a penny can cost you a dollar. Doing it yourself might seem cheaper initially, but missing out on professional insights could cost you way more in the long run.

Imagine this: You’re DIY-ing it, and you accidentally overlook some essential expenses that were deductible. Or, you make a small mistake that, multiplied over months, becomes a big headache later. When you work with a professional, you’re not only paying for the time it takes them to do the work—you’re paying for peace of mind and expertise that ultimately save you money.

A skilled bookkeeper can help you:

• Avoid costly errors - because you don’t know what you don’t know. But a professional can keep you from making those expensive mistakes.
• Maximize deductions - by making sure you’re capturing expenses accurately + NOT overstating your income, you’re finding smart ways to save on taxes.
• Save time - ten out of ten small biz owners did not start their business to spend hours each week on bookkeeping (unless you’re a professional bookkeeper LOL). Focus on what you do best, and let a pro handle the books!

Why It Matters: Every small business needs a financial team, and one of those team members should be a professional bookkeeper who understands your industry. When you have a solid bookkeeper, they can help you make better financial decisions to allow you to soar higher than ever.

?

THE WRAP: So there you have it—five big bookkeeping myths busted! ?? Don't let these misunderstandings slow you down. Bookkeeping doesn't have to be scary or boring. With the right help, it can be as easy as pie! ??

If these myths have been holding you back from getting the bookkeeping help you deserve, it's time to change that. Your business deserves a financial co-pilot who cares about your goals, watches out for your bottom line, and makes sure your books are in top shape!

Ready to Bust Some Myths? Let’s Chat! ??

Whether you’re new to bookkeeping or want a fresh start, we’d love to discuss how we can help. Let's chat about getting you organized, reducing that stress, and making sure your books work for you, not against you.

Drop us a line on our contact page OR schedule your FREE 30-minute call today!