You value your business. You’re on a mission to grow your business and make an impact on the world. Those who work for you rely on your ability to make smart decisions and steer the business in the right direction. But what happens when you ignore small accounting oversights? Are you aware of the money these oversights are costing you, as well as the detriment that it can eventually have on the growth of your business? Cash flow is the most important tool for a growing business, and you’re accounting mistakes can cost you a ton.
At Limitless Investment & Capital, we work to make sure you have zero accounting oversights, and that you have all the financial information you need to make the best decisions for your business. In this article, you will find four accounting mistakes and how to avoid them.
4 Accounting Mistakes
#1. Disorganized Expense Records or Lost Receipts
If your expense records and receipts are strewn across a desk somewhere, you’ve made your first accounting oversight. The organization of your expenses is paramount to the success of your business. You can have a ton of cash flow, but if it does not exceed your expenses (known and unknown), you’re the captain of a sinking ship.
#2. Receivables Are not Monitored
Cash in is good, right? How much cash do you have coming in? If you do not monitor your receivables, you’re unable to determine where you can take risks for business growth. If you make a business move based on inaccurate financials, you could sink your ship before the market does.
#3. Not Recording Cash Expenses
You keep track of cash coming in, so why not keep track of cash going out? Your cash expenses may not be a “part of the system,” but they still matter. You can write your business expenses off, including cash, which means keeping record of cash expenses can reduce your tax obligations.
#4. Mixing Personal and Professional Expenses
When tax time rolls around, a “mixed” account, including personal and professional expenditures, will cost you more. The headache that it causes for your tax professional and your business is not worth the trouble. All you need to do is get a separate account and card.
How to Avoid Accounting Mistakes
Now that you’re aware of the most common accounting mistakes businesses make on a regular basis, it’s time you solved your own mistakes or prevent them. What’s one way to make sure you don’t make these mistakes in your own business? Hire a professional accountant. What’s more, outsource your accounting responsibilities so that you can make informed business decisions based on accurate financials, as well as save money compared to keeping an accountant in-house.
Limitless Investment & Capital is here to help you take your business to the next level. Whether you need an accountant or have an in-house accountant you’re seeking to replace. We are here to grow your business with you. A great way to start this process is to give us a call. We’ll start the conversation with an initial consult, determining how best we can serve you and your business. When you choose us, you gain limitless ways to grow your business.