Common Bookkeeping Mistakes Made By Small Business Owners
Analyzing financial statements, taking care of payroll, and filing taxes promptly are all essential elements to running a successful business. However, number crunching is not everyone’s forte, so accounting is best left to an expert.
Unfortunately, many small business owners prefer to handle the books themselves to save money. It’s a big mistake if the entrepreneur is not well versed in accounting as it could create a financial issue that threatens the business’s survival.
So to help you avoid some basic errors that could prove to be costly, Symphony Development Group has put together a list of the most common bookkeeping mistakes made by small business owners.
1. Not keeping track of expenses
Most business owners are focused on their enterprise’s operations, so processing revenue and expenses at the end of a long busy day is the last thing on their mind.
Often a business owner will say, “I will have to remember what that deposit was for,” and three weeks later, they are combing their records and online banking for the information they “had to remember.”
To help them track expenses and revenue, they can use the Xero cloud-based platform, which allows for quick notation and can help communicate with a trusted bookkeeping advisor more easily.
2. Not taking advantage of tax loopholes
Small business owners may not be aware of the tax implications of expenses. There are several areas to be mindful of, including educational costs for staff, maintaining professional expertise, and office parties.
The best way to track expenses is by using accounting software and document management tools while seeking assistance from a knowledgeable bookkeeper.
3. Not using real-time solutions
Not having financial information at their fingertips can prevent business owners from making informed decisions. Therefore, it is best for entrepreneurs to use Cloud-based accounting software such as Xero, which can get accessed virtually from any location. Bookkeeping services can also be provided remotely and managed effectively through current collaboration tools like Zoom.
Taking advantage of these online technologies and advisory services will allow entrepreneurs to feel confident when filing taxes each year.
To avoid these and other mistakes, reach out to the experts at Symphony Development Group in Mooresville, NC, and San Francisco, CA. We utilize the latest cloud-based technology to integrate our clients’ Shopify, inventory systems, job costing, merchant services and document management.
We also provide outsourced consulting, CFO, Controller, and Bookkeeping services remotely.