For a business to run smoothly everything should be perfect from educated employees to proper financial handling. Any mistake in finance can seriously impede the growth of overall business and drag it to a shaky ground. Unfortunately, for entrepreneurs and new business runners, in the absence of small business accountant these mistakes are common.
Mistake # 1: Not Keeping Record of Receivables:
Not keeping track of what you are paid for is not exciting at all. When an invoice is issued, it reflects that your customers owe you money. The consequences for poor record keeping will be wastage of many hours in updating the receivables, huge debts and overpaying at the time of tax paying. So, it's always best to mark as paid against the invoice and save it for further inconvenience.
Mistake # 2: Fail To Maintain Expense Receipts
Business expenses are huge and failure to properly maintain the receipts can result in serious cash flow, accounting and tax problems. Who has the time to sit back looking at the bank statement and remembering where did you spend $500? That is the reason why proper keeping is important. Although the process may seem difficult but one can make it easier by using a single credit card for payments, a confined envelope for keeping the receipts and a file or computer file for keeping all the records. But, hiring a small business accountant is one way ticket for proper maintenance.
Mistake # 3: No Cash Expense Record
It is crucial to record the expense dedicated for running small business so these can be subtracted from net income while paying taxes.
Mistake # 4: Not Hiring An Accountant
Biggest mistake done by business owners is thinking that they can perform all taxation and finance handling themselves which in reality is not possible. There is a lot to do and lot to understand and only small business accountant in Australia can do it efficiently for you.
So, hire a professional today and get your finance, tax and cash details in a perfect order so next time you need any detail they are always a click away. Hence you can save your money.
In nutshell, the above mentioned mistakes can pose a serious threat to your company and its reputation. It is advisable to be on the safer side and let a small business accountant handle this department for you. These professionals have the key skills, knowledge of the taxes, legal terms and the finance issues which allows your business to run smoothly and safely throughout. There are many firms offering small business accountant to ease the process for small business owners. So, hire one and avoid the mistakes that may harm your business in the longer run.