Accounting mistakes can be deadly, and it can cost you a lot. Today we will be discussing the top accounting mistakes business owners make and how can we learn from those mistakes so that we can take action against them.
Taking money from client
To keep your business running and upbeat you need to get paid from clients. Your work is done and is waiting for payments, sending invoices and keeping an account of what customer has paid and which client did not will give you a proper account of receivable balance. Maintaining all type of receivable will tell you where you have money coming from.
Invoices that take the time to get paid will always be hurting your business, but at the date of tax, you need to ensure your receivables don’t get into those taxes and over the time customers willingness to pay invoices to go down. So timely billing and accurately billing your clients will keep you running for a long term.
Always keep your receipts of expenses you made
Chasing down receipt at the time of taxing will waste a lot of time, so keep your receipt copies intact so that you don’t have to spend time remembering all those charges and finding those small receipts.
Some of the payments you make like entertainment, food will get 100% tax rebate, so they should be clearly managed and at a proper time as well.
Personal expenses should be separated with Business ones
Business accounts and personal accounts should never go hand in hand, for a business owner this type of mistake can turn into a nightmare at the time of taxing. Be sure your books of expenses for business and personal are different. And don’t think that writing personal expenses isn’t good. You should always do that.
Every month bookkeeping should be done
To run a business smoother than your previous fiscal you just need to keep your books properly, fill them every day and remember to compare accounts from previous times. If you allow yourself a small amount of time daily than at the end of the year, you don’t have to worry about in the last few days or week. take help of best accounting software wherever you need professional touches.
Hire professionals for taxing tax
To get maximum profits your accountant can give you tons of tips, so let them do their job and always keep a professional taxing agent in contact. Ask him about things you don’t know, tell him about all the minute details. He/She does your accounting will only make your business grow and hence, less time of your will be deducted from the ever great 24 hours for a small business owner.
That’s it, do tell us which of your mistake has not been covered and we will address it. Please comment below to tell about your errors and how did you solve them.