Common Small Business Accounting Mistakes

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Common Small Business Accounting Mistakes
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• Running your own company is full of challenges,
  some of which will be unforeseen, but keeping the
  books is definitely one challenge that you can
  prepare for, and below are 5 ways to avoid the
  most common accounting mistakes made by small
  businesses

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• Dont cut corners when hiring in your finance
  department
• One mistake commonly made by many businesses,
  both big and small, is not investing enough when
  hiring employees in accounts. A junior finance
  person will undoubtedly cost you less than a
  senior one, but can the junior person maximise
  the financial side of the company and enable it
  to expand, and will they have the necessary
  experience to help get your business to where you
  want it to be?

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• Dont be tempted to spend big on accounting
  software
• Some accounting software packages may sound like
  the perfect solution to all of your businesses
  accounts needs, but often it isnt necessary to
  fork out for expensive software that probably has
  a lot more functions than you will have use for,
  particularly if yours is a smaller business. If
  you are going to invest in accounting software,
  ensure that it focuses on the areas that are
  important to your business, like cash flow,
  compliance and invoicing.

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• Keep family members away from your accounts
• So many times business owners hire members of
  their family to manage their accounts, and while
  this may seem like the simplest and cheapest
  solution, it can often turn out to be a disaster.
  This is a sure fire way to create arguments and
  unrest both in the office and at home, so while a
  professional accountant will cost you more, they
  will save you a lot of trouble in the long run.

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• Avoid using a single checking account for
  business and personal use
• It may seem like too much hassle to open separate
  accounts for your business and personal accounts,
  but things could quickly become very confusing,
  especially when entries from one or the other
  begin to mingle on the companys books. Putting
  personal expenses onto your business credit card
  is a recipe for disaster, and you will end up
  wondering why it is that your business isnt
  making the kind of money you think it ought to
  be. This will also incite the interest of the IRS
  when it comes to paying your taxes.

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• Dont try and take everything on yourself
• When your company is in its initial stages, you
  may find yourself tackling your own accounts, and
  this may work well enough to begin with, but as
  soon as your business begins to expand, youll
  doubtless find yourself in over your head. Hire
  an accountant and let them handle your finances
  while you focus on other aspects of your
  business if your accounts are running smoothly,
  the chances are that your business will grow at a
  far faster rate.

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• Take heed of these simple tips to avoid making
  costly errors that could prevent your business
  from flourishing.

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• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax services Miami. If you
  are looking for Miami accountants, Heyer
  Associates would be a right option.