Top 10 risks of bookkeeping doing by yourself
Trying to save money by doing the bookkeeping yourself can be very costly. We’ve identified 10 danger
items to be aware of.
Simple bookkeeping mistakes can become very costly, not only by incorrect allocations, but also in the
time that’s spent tracking down the source of the errors.
Bookkeeping is a task that many business owners hate doing, and is often rushed, left to the last
minute, or carried out late at night after a hard day at the office or on site. It’s time like that when the
mistakes are made, and incorrect bookkeeping can expose owners to substantial fines if discovered by
a Tax Office audit.
HERE’S A LIST OF TEN COMMON MISTAKES MADE BY SMALL
BUSINESS OWNERS IN DIY BOOKKEEPING
This is still an area of confusion particularly for start-up businessess. We often see sole traders
charging GST without being GST registered.
2. Claiming GST credits without realising that your supplier is not registered fo GST
3. Claiming GST without valid tax invoices
4. Not understanding the accounting software package
As accounting software packages are simplified by programmers, they seem to get more complicated
for the end user. Many of the functions are confusing for the business owner who may have no
understanding of double entry bookkeeping. This can lead to business owners doubling their work in an
effort to create the desired reports, and therefore producing inaccurate bookkeeping records.
5. Incorrectly allocating the data entry can result in missing valid tax deductions that should rightfully be
claimed. Your accountant will generally not have time to go through each item, and may not fully
understand your business. So if you’ve allocated data incorrectly, you r accountant may also miss those
6. Missing deadlines for Business Activity Statement (BAS) and PAYG lodgements
You could be subject to fines and penalty payments
7. Superannuation contributions -
Under the Superannuation Guarantee legislation, you a