5 common accounting mistakes
Starting a business can be a challenging experience, especially when it comes to managing your numbers and staying on top of your financial management. Here are some of the common mistakes you could be guilty of making when processing your accounting records.
Unless you’ve got some experience in finance, the bookkeeping and accounting requirements can be quite daunting. And even with today’s helpful cloud accounting software, there’s always the possibility of making a simple accounting mistake.
There are plenty of traps that a newbie owner can fall into – and even a few hurdles that the more experienced business owner may trip over from time to time.
So, what are the most common accounting mistakes made by business owners? And what can you do to avoid these pitfalls and keep your finances looking healthy and shipshape?
The 5 Common mistakes we see:
- Mixing your personal and business finances – when you don’t separate your personal and business transactions, this blurs the lines and makes it difficult to track your income and expenses accurately.
- Skipping the record-keeping process – if you fail to keep receipts, log your invoices and keep proper records this can be a major problem further down the road. Detailed records are crucial for tax filing, budgeting and identifying spending trends.
- Miscategorising your expenses – throwing all your expenses under ‘miscellaneous’ makes it far harder to analyse your spending and cashflow.
- Winging it when filing your taxes – taxation is complicated and it’s easy to make costly mistakes, if you’ve not planned and things are not organised. Don’t put off dealing with tax issues!
- Failing to get proper accounting advice – if managing your finances becomes overwhelming, don’t be a hero. Outsource your accounting tasks to us to get real peace of mind and improved financial management.
‘Doing the books’ is unlikely to be your favourite part of running a small business. By outsourcing your accounting tasks to us, you can ensure your accounts are always up to date.
Call us today to find out more information.
