If your small business uses accounting software to prepare your financial statements in-house, then you're putting in all of that extra time and effort for a reason!
Maybe you think your business is not the right fit for an accounting service, or maybe you trust yourself to handle your books and don't see the need to outsource. You could even want nothing more than to just balance a checkbook or file your taxes. But most likely, you're concerned that having somebody else do the work will cost you an arm and a leg.
When you use accounting software instead of outsourcing, you're counting on it saving you some money. What happens when it doesn't? Record inaccuracies can result in penalties and interest down the line or make you miss out on reimbursable expenses. Not to mention, going through an audit will take up a lot of the time that you could have put toward making profits. If you don't have a background in accounting, you may not even realize you're getting lost.
How can you tell if your bookkeeping is getting mixed up? Start by taking a look at your financial statements. Here are some common red flags.