Accounting Mistakes by Small Business Owners

3 Biggest Mistakes Business Owners Make with their Accounting

The quality of your accounting system will have a direct impact on every aspect of your business: current cash flow, future growth, and long-term business success. If you are a business owner or entrepreneur, then it is essential to make sure that you have a quality accounting system in place.

Even if you have an accounting system, it doesn’t necessarily mean that all of the essential tasks are done. These are some of the common mistakes that we see in small businesses:

New Call-to-action

Mixing Business and Personal Expenses

Even though you have a home based business, it is essential to keep the finances separate between your personal life and business spending. Blurring the lines between business expenses and personal needs can lead to confusion when tax time rolls around.

Make it a point to set up a business bank account and credit card, and don’t let the lines blur between your business and personal spending. Whenever a business expense comes through, it is important to document the transaction so that you can use it as a tax write-off. Keep a file of receipts and share the transaction details with your accountant.

Missing Tax Deadlines

It is easy to overlook a tax deadline or paperwork that needs to be submitted. Many business owners have too much going on, increasing the likelihood that they forget to send a payment or fill out necessary tax paperwork. These deadlines are important! If you miss the deadlines, then you are at risk of fines from the IRS.

On the other hand, meeting the deadlines will keep your business blended in with the group. Do the best that you can to stick to the deadlines so that you can avoid putting your company in a situation where you are being audited by the IRS.

Hiring an Inexperienced Accountant

If you are going to spend money on accounting services, then make sure that you hire someone who has experience in the industry. A new graduate right out of college won’t be able to offer the experiences available from a team of seasoned accountants. You need to tap into that experience to increase the future success of your company. So, find someone who knows the best practices in your industry.

Here at Easier Accounting, we know what it takes to help your business experience financial success. If you need a professional team to help with accounting and bookkeeping, then we invite you to contact us for more information about the services that are offered: (888) 620-0770

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *