Procrastination of bookkeeping work can be especially costly for small business owners, as it tends to compound problems over time and make tasks more difficult and expensive in the long run. Let’s face the “true cost” of delaying accounting and bookkeeping tasks:
Time Loss and Inefficiency: Business owners who delay bookkeeping often face inefficient, manual processes when they finally sit down to tackle it. These tasks, like collecting and organizing receipts or fixing errors in financial documents, take much longer when allowed to pile up. Small business owners spend up to 80 hours per year on bookkeeping when trying to catch up at year-end compared to saving anywhere from 30-50% of that total time by keeping your records up-to-date over the course of the year. For a small business, this could mean saving dozens of hours which can translate to cost savings and reduced stress, especially during tax season.
Financial Penalties: Delayed bookkeeping often results in missed deadlines, leading to penalties and interest charges from tax authorities. Additionally, errors that go unnoticed because of rushed bookkeeping can cost businesses in terms of lost deductions and potential audits.
Stress and Burnout: Pushing off bookkeeping also adds stress for business owners. When faced with tax deadlines, business owners may need to scramble to complete the work, increasing the risk of errors, employee burnout, and overall frustration.
Procrastination in bookkeeping not only costs you in terms of immediate financial penalties but also results in lost opportunities, time, and peace of mind. It’s easier to stay on top of your books when you know you have regular, efficient processes that get the job done while keeping things simple. That’s what we’re all about at Big E-Z!
For more tips and personalized help, don’t hesitate to join our upcoming webinars and monthly DIY client hours. We’re here to support you every step of the way.