Say No To These Accounting Mistakes To Experience Better Business Flow!by Lunna Walker Accountant
Most of the users of Sage cloud accounting has experienced fall in their business and said that the reason behind fall is lack of management on the business premises. However, we truly believe that saying 'NO' to these accounting mistakes continues the better business flow.
No matter how efficient your process, how secure your platform, and how smart your Sage cloud accounting application — everything is close to an illusion as long as you feed accounting mistakes. Young businesses are turning smart and undoubtedly, holds the potential of marketing but; what about accounting, bookkeeping, and taxation related activities, which needs to managed accurately and on-time.
Barring pause for second thoughts — accounting mistakes can drift down the growth of your business and put it on a dark ground. However, when it comes to accounting mistakes, there's nothing uncommon for business. Thus, we listed five most common accounting mistakes made by almost all new or young business owners.
Invoices Issued, Receivables Yet To Record
Businesses always love to have the payment from their clients or customers but, what they don’t really love is, managing their receivables at the time of getting paid. It is important to make receivable entry whenever invoice issue as it will help you to check how much money customer owes from you.
At the time, when you receive payment from the customer, the invoice must mark paid. As this practice will help your receivable list make sense and you don’t have to struggle during the time of tax filings. If you want to skip the manual updating process then, sage cloud accounting software and e-payments will surely, going to help you out.
Not Keeping Expense Receipts
If you are from the business owners, who forgets to save copies of expense receipts every time then, you must also experience some serious tax, accounting, and cash flow related problems. Most of the times, we mistakenly paid our personal expenses from business cards or for some equipment, meals which later on, results in incorrect reported tax expenses. Receipt problem in businesses are real and, disastrous; can also force you, sometimes, to pay high tax bill if ever audited.
To overcome expense receipts issue, you must carry an extra purse, envelope, or worst, trash can; where you can put all the receipts — check them, file them to tax folder, or save digital cloud copies. However, only paying from a business bank or credit card for business expenses is also one wise practice to make.
Not Hiring a Professional to Handle Taxes
To run business in decided budgets — Small business owners often do their own taxes and eliminate the need for professionals. But, the truth is little different; not hiring a professional might cost even more to businesses. There is a possibility that you don’t know all the laws and — Not claiming all the deductions you qualify for or underpay your tax bill which leads to penalties and other fees.
Hiring a professional to handle your business accounts & taxes is always sounds to be a good decision. As they know how to handle your transactions, and can forecast strategies to handle your financial situations. Always remember — Your small business success, to an extent, depends on the accuracy of reports and structure of finances.
It should be a real deal between your accountant and you that both of you, convey the same language of profit & loss. Work as a team and handle tasks efficiently; your accountant will watch you back and offers advice so that you can bank on in every situation.
Created on Mar 29th 2018 04:48. Viewed 221 times.