Here are five common small business accounting mistakes. Let’s go through these together. They are in no particular order, but five that I find are very common and happen frequently.
5 Accounting Mistakes
- You don’t separate your personal finances from your business – This means you are using your business to buy groceries and buy personal items. Keep that separate. Set up a separate credit card, separate bank account, keep your personal finances apart from your business.
- Reconcile – Use an accounting software like Quickbooks to reconcile to a statement whether a credit card statement or a bank statement. Then you know that nothing is doubled or left out. Everything is trued up month over month.
- Never going back, reviewing or analyzing – What did I do? How did I do? Can I do it better? This is one where it’s really easy to work in your business, but not on your business. Take time to work on your business and analyze the numbers you are recording.
- Not planning, budgeting, or looking forward – These are simple things like “Do I have payments on a credit card I need to pay down?”. This could also be that you’re not anticipating what taxes will be at the end of the year.
- Not setting it up, not having a system in place, no records to reference – This is the most common we see. You are too busy doing the work and not really working on the business aspect. Don’t let this one be missed and if you need help setting a system up we can help do this for your business.
So with these five small business accounting mistakes know that we are here to help you! This is what we love to do. If you need any help please reach out to us, we would be happy to help!
Ready to take the next step?
Schedule a quick call with our financial advisors.
Retirement Saving Strategies for High Income Earners [Video + Free PDF]
One of the most common questions we get from high earning business owners and corporate executives is: how can I be saving more money for retirement? Here are several options to consider, along with a video and free PDF guide.
Be Proactive: Tax Analysis [Video]
One question we hear a lot from those who are self-employed and doing some type of payroll is: “How do I balance my taxes and save for the future?” For this let’s discuss your tax analysis… Let’s go through an example so I can show you some of the mechanics of how a…
Stephen Smalenberger, EA
Steve enjoys getting to know clients and hear their unique stories and the lessons learned which has brought them where they are today. One of the reasons he enjoys what he does is the ability to show the outcome that can be achieved with different choices. He also enjoys continually learning.