A recent GoDaddy survey revealed that over half of small businesses surveyed are still doing their books manually using either paper-&-pencil, a homemade spreadsheet, or simply a checkbook register! These same small businesses are spending more than a day preparing for year-end tax preparation.
Imagine how much time could be saved by using some of the automation features available in today’s bookkeeping systems! In addition to downloading data from your bank, most programs will go so far as to suggest the vendor name and expense account for you!
Over 40% of small business owners surveyed by GoDaddy listed bookkeeping and taxes as the most unpleasant part of owning a small business. Other survey results were:
- Almost half (46 percent) of small business owners reported they do not work with an accountant.
- Of those small business owners who do work with an accountant, 47 percent see their accountant once a year at tax time or only when they have a question or need help.
- In the last 12 months, nearly a quarter of small business owners said they had lost track of whether a customer has paid them or not, or could see it happening in the future.
- 32 percent of small business owners do not set aside money throughout the year to pay income taxes.
- 12 percent of small business owners have no idea how much they will owe in income taxes, while 74 percent reported that they usually know the “ballpark” of what they owe, while just 15 percent know exactly how much they owe.
These results reveal the value of a complete, accurate and up-to-date set of books. If you are one of the 40% of business owners who would rather go to the dentist than do your books, contact us today about our virtual bookkeeping services!
Deb Howard Greenleaf, EA, CEO and Principal, of Greenleaf Accounting Services provides virtual accounting and bookkeeping services and specializes in financial management to consultants, coaches, solo professionals, and other small business owners across the US. Deb is an Enrolled Agent (EA)—an IRS-licensed tax professional—and specializes in small businesses and entrepreneurs filing Schedule C or as an LLC. As an Advanced Certified QuickBooks ProAdvisor, Deb spends her day in QuickBooks Online and specializes in providing QBO support.