Newsletter: 02-11-18
10 Common Accounting Mistakes Business Owners Make
As a business owner, it is important to be involved in all aspects of your operation. That doesn’t mean, however, that you are an expert at everything. Business owners may wear those strategic and customer-relations hats well, but many have a much more difficult time when it comes to donning that accounting chapeau.
Even worse, financial mistakes can actually stunt growth or adversely impact your bottom line, clog cash flow, attract undue attention from the IRS or damage reputations with suppliers, customers and staff.
To avoid those scenarios, here are 10 accounting mistakes business owners commonly make and the reasons why these errors—both calculated and inadvertent—can be so detrimental.
- Falling Behind in Entries and Reconciliation
Time is definitely not on the side of the small business owner, especially when there may be daily fires to put out. Suddenly, months have passed without making any entries in the books nor reconciling any business checking statements, credit card statements, sales tax accounts or other types of financial accounts. This means financial statements and reports are not current. Without up-to-date information, it is challenging to make sound business decisions.
For example, spending money may result in a negative balance or reduced profitability because unpaid invoices have gone unnoticed. Not entering financial data can also lead to problems with suppliers, where invoices to be paid may go unnoticed, leading to problems in getting materials or even a bad credit rating for the business. Continue reading…
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About Taisha Associates
Since its inception, TAISHA ASSOCIATES core services have been built around providing small and medium-sized companies with the timely financial information needed to make informed operational decisions on a daily basis. When you are looking for accounting outsourcing, we can provide you with the solution you need to succeed in today’s competitive environment.
Our team of professionals has about two decades of operational accounting experience and understands the challenges you face on a daily basis. We have used our experience to develop systems designed to streamline accounting processes. From beginning to the end, we will help you process, record, and analyze your data.
Our goal is to offer qualitative, accurate and affordable accounting and bookkeeping , taxation, secretarial and consultancy services that provide good financial analysis/information and guidance for making sound and informed decisions that lead to growth and profitability.
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