Top Five Bookkeeping Myths

"Once I clean up the mess, then I'll hire a bookkeeper."

Have a stack of paperwork to go through? Tax returns late? Haven't reconciled accounts in months? A good bookkeeper can help you clean up these issues, and then keep it maintained for you.

"Bookkeeping is just data entry work — anyone can do it."

Think bookkeeping is just reading receipts and writing checks? A good bookkeeper knows how to code transactions accurately for tax reporting, generate reports for your accountant, and create cash flow reports so you know when you'll have money in the future. If you feel this is a low paying, low skill task, you'll probably not get a quality bookkeeper.

"I'll hire a bookkeeper when I'm making more money."

Many small business owners make the mistake of thinking they need to get the business off the ground first, and then they'll start keeping track of their finances. Having a good financial structure in place in the beginning is essential. And when income isn't flowing in, expenses are still flowing out, and need to be tracked for tax reporting and analysis.

"Bookkeepers are just for 'big' small businesses."

"What did I spend my money on?" "Paperwork is everywhere!" "Will I have enough cash to pay myself by next week? next month? next year?" Do you find yourself saying these things? All small businesses, even individuals who don't own a business, can use a good bookkeeper, regardless of size.

"Good bookkeepers need to know what my accountant knows."

Bookkeepers should know what an accountant needs to know, but they should not be interpreting your financials for you. That's what an accountant does. Good bookkeepers are organized, accurate and pay attention to detail so your accountant has what is needed to analyze the big financial picture.