Accounting & Bookkeeping mistakes will impede the expansion of your business and land it on shaky ground. Sadly, errors are all too common, particularly for brand new or young businesses.
Insight on how to avoid making these bad-for-business bloopers yourself.
Mistake #1: Not keeping track of your receivables
“Getting paid is always an exciting part of running a business. What isn’t as exciting however, is staying on top of receivables.
“When you issue an invoice, a due is recorded—meaning that a client owes you cash. Checking your due listing you’ll see that customer’s balance as outstanding. As before long as you receive payment from that client, it ought to be applied against the invoice to mark it as paid. In practice however, this is often easier said than done, and client deposits are often left to reconcile afterward since there’s never enough time in a day.
Mistake #2: Not keeping expense receipts
“Many business homeowners fail to save copies of trade expense receipts, which may lead to a series of tax, accounting, and income issues. how many times have you ever checked out your bank account statement and had no clue what that $100 charge is? Is it a business meal, supplies, an equipment—or is it a personal expense you mistakenly paid for using your business card? Not having an actual receipt which will provide you with details regarding the charge can result in incorrectly reported tax expenses and a high bill if you’re ever audited.
Mistake #3: Not hiring Professional Accountant to handle taxes
Small business house owners usually try and save cash by doing their own taxes. In reality, not hiring a professional will price big bucks down the road. you may not claim all the deductions you qualify for, otherwise you might pay your tax bill—leading to penalties and other alternate fees.
Spending the cash to hire a professional, means that you’ll have an expert who knows what they’re doing, and can apply the proper techniques for your Financial situation. They can keep updated on the changing tax laws and assist you set up ahead for potential tax hikes.
If you’re looking to find a QuickBooks friendly accountant that understands the needs of small business, Check out the link below :