We all make mistakes.
(except my spouse)
It only becomes an issue when you start to make the same mistake over and over. You can avoid making the same ones by keeping a few simple things in mind. If you take the time to learn from your mistakes and do things right the first time, you’ll be able to maximize your profits.
Here are several common mistakes to avoid with your small business accounting.
- Stalling, Delaying, Postponing…Procrastination
- Waiting too long to prepare your financial information, statements, or taxes can be damaging to your business. The longer you procrastinate the deeper the damage can go. Also, if you have accounting mistakes on top of procrastination, it can make the situation even worse! TSAT can take these tedious tasks off your plate, ask us how!
- Not Keeping an Accurate Cash Flow Statement
- Cash is the lifeblood of any business. One of the biggest mistakes you can make is not setting up an accurate cash flow statement. Cash flow statements are used to show how much money your company is earning as well as spending, and this is information that you want to display for tax purposes. To avoid mistakes when preparing your small business accounting records, be sure to prepare your cash flow documents at least one month in advance. You should also take the time to review them every year to check for accuracy. Any mistakes can be very costly in terms of your time and business resources.
- Mixing Personal and Business Accounting and Banking
- Small businesses, especially with a single owner or member, or in the early stages, can find it difficult to separate personal and business accounting and banking. However, it’s best to separate your accounts as soon as possible. This will help to avoid any financial pitfalls. Reviewing your bank accounts and trying to remember which transactions were personal and which were business-related is a certain way to generate stress and likely mistakes. It’s also a massive waste of valuable time that could be better spent growing your small business. TSAT will let you focus on your business by taking these financial stressors out of your way!
- Miscalculations and Misunderstanding Metrics
- Small business owners have a lot on their plate. Couple that obvious fact with most do not have a background in accounting or finance. Is this Revenue, Net Profits, Accrual, Expense, Cryptocurrency, or EBITA? On top of those meticulous and sometimes confusing terms, simple mathematical mistakes and miscalculations are easy to make and can wreak havoc on a small business accounting system. An innocent error can compound overtime, if not caught, and ruin your financial health. TSAT will ensure all of your metrics and their calculations are accurate and on time!
- DIY and Google Accounting
- FIY, the DIY fad has faded. Google has billions of articles, a couple of which may be useful to your accounting needs, good luck finding them! This is true for many small business owners… trying to reconcile your own books can cost you, not only money, but time as well. We know, we know, you’re trying to keep costs low, but what most small businesses do not realize is this strategy can actually slow your growth and unquestionably threaten your financial health. Hiring TSAT will help you avoid expensive accounting and finance mistakes as well as save you large amounts of time, which allows you to focus on your core competencies. TSAT can also save your business significant sums on your taxes (business and personal). TSAT is not an expense, we are an investment in your future business!
Keeping your small business and personal finances in check is much more than taxes! TSAT will ensure all of your finances (small business and personal) are complete, organized, and easy to access. This will allow you to focus on your business core competencies and allow you long-term financial success(es). The sooner you call us, the sooner you will see the results on the bottom line!
If you are a small business owner looking to grow your business, TSAT’s AMAZING team considers much more than just your taxes!
TSAT’s Services will let you focus on your business’s core competencies! Whether you have a small business or you need help personally, TSAT can give you HOPE! Call us today!
Phone: (417) 208-2858
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