As a small business owner, you have a lot of different things going on at one time. You’re responsible for everything from keeping tabs on your company’s inventory to providing stellar customer service. It can be too much to manage, and at times, you might inadvertently make accounting mistakes simply because there is so much going on at once.
Here are four common accounting mistakes that many small businesses make:
Failing to stay organized
In order to keep track of accounting, a small business needs to be extremely organized. Otherwise, it’s going to be almost impossible to keep track of expense receipts, credit card payments, petty cash, and everything else that could affect the bottom line.
Failing to stay organized is one of the most crucial mistakes small businesses make because it’s hard to stay on top of business expenses if there isn’t a clear organizational system in place.
Falling behind on important paperwork
When small business owners attempt to handle accounting on their own, it’s not out of the ordinary for them to fall way behind on paperwork. As a result, they often miss deadlines to file paperwork, fail to pay sales tax on time, and even neglect to send bills out to customers. This can lead to businesses being forced to deal with things like bounced checks, tax penalties, and debts that never get paid off.
Making silly (but costly) errors when doing math
Something as simple as a small math error can take a huge toll on a business. If a small business owner adds up a series of numbers incorrectly or punches the wrong number into a calculator when going through income and expenses, it can throw a business’ accounting all out of whack. And it can take a long time for a business owner to go back through the numbers and find out where they made an error.
Refusing to delegate accounting to someone else
Arguably the biggest mistake that many business owners make when it comes to accounting is steadfastly refusing to get the help they need with it. Even though they might be burnt out from working on other areas of their business, some business owners just can’t relinquish control of their bookkeeping for one reason or another.
In some cases, it’s because they don’t want to hire someone to help, while in others, it’s because they don’t trust anyone else to do bookkeeping for them. Whatever the reason, it can come back to bite them in a big way if they aren’t able to take care of accounting on their own.
If you’re a small business owner who has made any of the accounting mistakes listed above, it’s time to get some help. Quadrant Advisory can offer you the accounting solutions and management services you need to keep your finances in order. It’ll allow you to spend more time focused on other aspects of your business and ensure you don’t continue making these same mistakes repeatedly. Contact us today to get started!