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Deadly Business Mistakes #3 & #4 & #5Monday 12/19/2011
DwayneDwayne Briscoe / Bookkeeping-Results, LLC
Owner / QuickBook Pro Advisor

888-692-2083 / 713-898-1648

www.bookkeeping-results.com
Deadly Business Mistakes #3 & #4 & #5

 

Mistake #3 - The runaway train syndrome.  So many small business owners are so obsessed with making money, they feel that they’ll get their books “caught up” until it’s too late and time to file their taxes.  Even worse, they wait several years before deciding it’s time to accomplish the task at hand.  Between sharing personal and business credit cards, personal and business bank accounts, as well as taking out large sums of cash with no back-up is a recipe for disaster in your business to fail before it can succeed.  This has nearly caused me to be amongst many other business owners I’ve met and worked with.  What’s the worst that can happen?  Getting so far down the beaten path that you’re just not sure how to get back on track again and you have very few options to figure a way out. 

 

The steps to avoid this are simple – keep focused on what your goals and objectives are, but also actually keep up with your finances.  It sounds like being a broken record, but if you think that expanding and going heavily into debt is the way to grow your business, it’s not.  Often times owners eventually get so far out-of-touch with what’s going on in their own business because they become obsessed with their total sales, that they fail to see what the actual net profit is.  Even quite profitable large companies, with Krispy Kreme being a great example, grew too fast and eventually nearly went out-of-business because they didn’t strategize well enough.

 

Mistake #4 - Why back-up my information?  First off, paper documentation can fade, be misplaced, destroyed by accident, etc.  The same can happen with computer files, whether you’re using QuickBooks or Excel spreadsheets.  This is why scanners, flash drives, and back-up systems are available to protect the information.  The IRS can go back as far as 6 years, and just because you don’t have the information to back-up your tax return figures, doesn’t mean that you’ll be forgiven.  Yes the IRS doesn’t require receipts under $75.00, but that doesn’t mean that you can work without them.  The devil’s in the details, and you would have no one to blame but yourself if you lose all of your data.

 

Just ask yourself how many hours would it take for you to actually have to reconstruct a year’s worth of information if it just went away, either through a computer virus, fire in your office, stolen laptop, etc.  Then ask yourself the question, would it be as accurate as it was when you first entered it?  What can you get for less than $60.00 per year?  Carbonite or similar back-up software, which has the capacity of keeping everything backed-up off-site and available for you to download should you ever need to.  Now ask yourself, would something like this be worth it?

 

Mistake #5 – I don’t have time to talk about my financials.  The person handling your books is a key partner in making your business a success.  However not making the time to review what money is coming in and going out, you have no earthly idea on if you’re successful or not.  Your employees could be committing fraud, you could be behind in getting your bills paid on time, you also could not be collecting on overdue invoices, and potentially ruining your credit in the process.  All because you don’t make the time to understand your financials because you are too trusting and when it’s too late, you’ve potentially lost your livelihood.

 

Why does it seem so taboo for people to talk about money, especially to the person who’s keeping up with their books?  Worse yet, why are so many owners afraid of finding out what’s going on and taking an active interest?  People wonder why they can’t “get their money back” because they gave their financial person a rubber signature stamp and they stole tens of thousands of dollars from them.  People wonder why their information is all over the place for the entire world to see that funds have been stolen, yet they are too scared to stand up and admit they made a mistake and prosecute the people who stole from them.  Why is it so difficult for people to stand up for what’s theirs?

 

People have often asked me what’s the worst type of fraud I’ve come across, and I reply to them that it’s the business owner who fails to see it first-hand and not believe it when it’s self-evident.  Whether it’s a trusted friend or family member, you are still held accountable for the actions that involve your business.  When you reply to someone who is genuine about helping you with understanding your financials and potentially solve problems that plague your company, don’t just blow them off thinking they don’t know what they’re talking about.  You are the one who hired them in the first place to help you, so let them do their job or just go ahead and close up shop and be done with it.  It’s your choice.

 

 

 

About Our Show Advisor: Dwayne Briscoe is the founder and owner of Bookkeeping-Results, LLC.   Dwayne began his company in January 2007, based on the foundation to educate small business owners and bookkeepers who use QuickBooks®.  Working as a full-charge bookkeeper and trainer in a variety of industries for over 15+ years, he is a certified Pro Advisor with 5 certifications, including Enterprise Solutions and Point of Sale.  He is also an instructor at Brazosport College in Lake Jackson, where he teaches basic accounting, QuickBooks®, and basic payroll, along with hosting his own private classes.

 

Bookkeeping-Results, LLC has focused more on quality and not quantity for their clients, by paying attention to the details.  Through regular continuing education participation, as well as exploring additional ways of “thinking outside of the box” to help expand people’s knowledge of their own financial well being, it’s important to focus on not only saving the client money but also making the client money.

 

Special Promotional Offer! For every person who either calls in or e-mails Dwayne that they heard him on the Steven Kay radio show, they will receive a 10-point Year-End Checklist that is not available to the general public.  It covers everything from what to do about W2s that come back from employees who have moved, all the way through the new IRS 1099K credit card being sent out in January.  To make this offer even better, Dwayne will answer one question about QuickBooks for free.

 
Previously broadcast from:
SKL @ BlogTalkRadio.com 11/07/2011 - 01/03/2014
CBS Radio's Talk 650 10/12/2009 - 07/01/2011
CNN 650 Radio News 11/08/2006 - 10/08/2009
KSEV AM700 04/04/2005 - 10/30/2006

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