Avoid These Common Small Business Accounting Mistakes

March 13, 2018 by OSYB Staff

The Small Business Association defines a small business as having under 500 employees.  Currently, there are about 22 million businesses that have a sole owner/employee.  One person running the entire business can leave room for some costly mistakes.  Small Business Profit Explosion shares some common accounting mistakes that you as a business owner should avoid:

• Keeping poor expense records – on a monthly or weekly schedule ensure that your expense records are exact and that you itemize original receipts
• Not having a relationship with an accountant – having a regular consult with an accountant will give you the latest business tax advice
• Preparing your own taxes – it is important that you have a tax professional work on your taxes to ensure that you take advantage of all the applicable deductions
• Being lenient about collecting outstanding invoices – unpaid invoices should be attended to on a weekly basis, so as to prevent a delay in your tax preparation
• Not investing in yourself – as a  small business owner you should be taking advantage of  the tax breaks you get from having retirement savings accounts which will also provide you with the funds that you will need later in life.

Having a relationship with an accountant from the onset of your business will save you headaches at tax time and help to keep you on top of your financial planning and strategies.

Read more: Common Accounting Mistakes Small Businesses Make

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