7 Accounting Blunders to Avoid
Avoid These 7 Accounting Blunders 1. Not Separating Business and Personal Finances One of the most common mistakes small business owners make is commingling their personal and business finances. This can create a host of problems down the road, including difficulty tracking expenses, issues come tax time, and problems if your business is ever audited. To avoid these issues, it’s important to open a separate bank account for your business and to only use it for business expenses. This will make it much easier to track your spending and keep your finances organized. 2. Not Keeping Accurate Records Another common mistake small business owners make is not keeping accurate financial records. This can lead to problems come tax time or if you are ever audited. To avoid these issues, it’s important to keep accurate records of all your income and expenses. You should also keep track of any inventory you have on hand. This will help you stay organized and make it easier to file your taxes or respond to an audit. 3. Not Staying on Top of Receivables If you’re not careful, receivables can quickly become a nightmare for small business owners. When customers don’t pay their invoices on time, it can put a serious strain on...