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Deadly Business Mistakes #6 & #7Monday 12/26/2011
DwayneDwayne Briscoe / Bookkeeping-Results, LLC
Owner / QuickBook Pro Advisor

888-692-2083 / 713-898-1648

www.bookkeeping-results.com
Deadly Business Mistakes #6 & #7

 

Mistake #6 – I’ll stick with my green journal pad.  It’s 2011 and people are still TOO CHEAP to spend a few hundred dollars on a software program that can give them all of the information that they need to help make their business successful.  Yet, they’ll spend thousands of dollars on trying to bring in customers, new equipment, or salaries on themselves or employees.  Where is a business owner’s common sense when they feel that the accounting part of their business is a financial black hole.

 

It never ceases to amaze me the amount of work people will put into using Excel spreadsheets, notebook paper, and software that is so out-dated that the company is no longer in existence.  These people are CPAs and IRS Enrolled Agents.  Not to mention there are business owners often in the same boat.  I am the first one to admit that QuickBooks will NOT do everything you want for your business and it’s necessary that you have other software that is specifically designed for your business.  Unfortunately often times this type of software can’t do the different type of accounting reports that QuickBooks can do, so you have to work towards combining the two in order to achieve accurate financial reporting to make informed business decisions.  Please be aware though that too many software companies out there will say they work with QuickBooks but you have to buy additional software so they can communicate to each other or they may not bring in all of the information you need.  If you’re ever in doubt, look into the Marketplace in the QuickBooks web site.  I always explain to business owners, if the software isn’t listed, then it’s not guaranteed to work well and you should consider other alternatives.

 

If you do nothing else though, get rid of the paper and Excel spreadsheets.  You cannot accurately reconcile a bank statement in Excel, which is paramount to your business.  You also cannot keep track of EVERYTHING on paper.  I had someone come up to me a few months ago and question me why it was necessary to keep their municipality’s 7-figure accounting information in a software, when he’s been keeping his own business records on his trusty pad.  I explained to him that when he gets to the 7-figure range, come back to me and see how easy it is to keep track of everything for IRS reporting.

 

Mistake #7 - Why can’t I charge every expense off to my business?  The definition of a business expense, is a transaction for which is necessary to help the operations of a business.  This goes back to: Why do I need to know accounting to operate QuickBooks?  What does taxes have to do with QuickBooks?  Every decision you make financially that goes on that tax form, needs to be justified and defended if it ever gets called into question.  If running a business was easy, then everyone would be doing it.

 

My most memorable expense write-off was when an electrician company owner wrote-off her purchases to Victoria’s Secret as office expenses early on in my independent career.  People will try to get away with everything, but with the estimated 60,000 IRS auditors hired in 2011 and QuickBooks software training for all of these preparers, are you willing to take the risk of being audited?  When you compound the amount of interest and penalties for expenses you choose to write-off knowing that they either don’t exist or are nowhere near being legitimate, you have to ask yourself is it worth it.  You’re willing to make the sacrifices of time, money, sleep, family dinners, to make your business a success, but if the challenge of not knowing if you choose to make the right decision in what is a valid deduction versus one that clearly isn’t, you have to go back and ask yourself if any of it is worth it.

 

 

 

 

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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