The Hard Way: Bookkeeping Mistakes I Made (and What I Learned)

One thing about running your own business is that you never stop learning. Ever. I'm in the business of bookkeeping and accounting, and the learning just never ends. The best lessons I've learned was by making the most painful mistakes. Money mistakes are the most painful, disheartening, and discouraging ones. I'm putting right at the top of the list because the consequences of that will kill you spirit slowly.

Here are some of the mistakes biggest I've made.

Not charging enough for my services

Being new in any career automatically lowers your believe in yourself because you just assume that you don't know enough. Based on that assumption I charged way too little for my services. When I started out, I decided to charge little and learn a lot. Big mistake. It is one of the worst feelings in the world to work your butt off, deliver your best and not getting paid for the work you've put in. It's a feeling you never want to have. Ever.

The lesson I've learned was to never give a quote without understanding the scope of the work. I also had to stipulate very clearly what services are included in the fee, and make the client understand that extra work will come at an extra cost.

Charging too much for my services.

Yep, then there's that. After a very exhausting, disappointing and bitter second year of business, I went rogue with my pricing because I was just so angry. That year I had quite a few clients but because I charged so little I was left with no money to show for it. And that infuriated me so much that I increased my fees so drastically that I scared away potential clients.

I had to learn to not punish potential clients for the mistakes I've made with previous ones. And to stop giving quotes based on anger but instead focus on what the client needs from me.

Not networking enough

Networking is like throwing a dice, sometimes you get it right, other times you don't. Let's face it, it can also be one of the most useless and time consuming exercises because everybody's looking for business. But the advantage of networking is that it's always possible that you might meet that one client that can entirely change your business.

I didn't network at all. I just focused on learning and completely isolated myself from everyone, except from my clients and my family. I convinced myself that I didn't have the time to go to useless events. Big mistake, especially in the accounting world.

I started reaching out to total strangers for help and advice. And it was a game changer. I've discovered that auditors and accountants are more than willing to help if you're willing to ask them. The best advice and support I got was from people in the industry I've never met.

I just had to change my idea of networking and do what works. I also had to be willing to offer something in return for the time they take to answer my calls. Whenever I have a client who needs a service I can't provide, I refer them to one of the professionals I'm networking with. I still don't go to many events, but I've learned to build meaningful relationships with professionals who not just know more than I do; but who've also been doing this for way longer than I have.

Software blindness

I started out using Quickbooks Online, and it was and still is one the best accounting software in my opinion. I loved it so much that I didn't want to consider any other software, especially not Sage. The truth was, I was comfortable and familiar with Quickbooks and intimidated by Sage. I used it as a student and I've hated it ever since.

The mistake I've made was trying to convince potential clients to change from Sage to Quickbooks before even signing them up. Yes, I did that. Can you imagine how that went?

When I actually looked at Sage again, I was impressed with what they had to offer. I did their free online courses to familiarise myself with their accounting and payroll software. Shortly after that I actually got a client who was using Sage and I could accept the job with confidence. Once you start looking at other options, it does open up more channels. Even though you can't know or buy all the software available, it's always good to know more than one.

Not dealing with my emotions

Running a business will test your emotions like few other things can. Except children, they have the same effect. As much as I enjoy what I'm doing, there are days that I just can't stomach another bank statement or that client who only calls when there's a crisis of epic proportions.

The joy of getting another client goes hand in hand with the frustrations, disappointments, anger and defeats of dealing with clients.

I had to learn to deal with negative and ugly emotions immediately they arose. This prevents me from making a voodoo doll and putting a hex on a client. I had to accept my limitations and accept the boundaries the client sets. Just because I know what to do doesn't mean I can force a client to implement it.

I had to learn how to deal with disappointment and the frustration of late payments or a client that just goes silent and then eventually disappears when it's time to pay.

How do I do it? I run, instead of ranting. I write, instead of whining. I read crime novels and I watch series and movies about rich people sticking it to each other. Then I feel less like an idiot and realise that I'm not the only person in the world who's been taking for a ride.

It doesn't always work because the actions of some clients cut really deep. The best is to ask: Where did it go wrong? What did I miss? Could it have been prevented? And how do I do better next time?

Mistakes can be painful but I know that I've reached the other side when I can laugh about it. All I can say, is that mistakes will happen. The only thing you can do, is to learn from it. Just think how much experience and knowledge you've gained by making those mistakes and how it has changed you.

Yes, there'll be moments you'll feel like a complete idiot for ignoring your gut and the red flags but you can't change the past. Once it's done, it' done and you can only move forward. But never let mistakes cause you to give up. You've come too far for that. Change direction, if you have to; just don't give up. And whatever you, don't become bitter.