1. Not Staying On Top Of Incoming Money
An invoice is sent to your customer and recorded in your books; meaning your customer owes you money. When you receive a cheque apply it to the invoice so its marked paid.
At tax time, the receivables have money in your sales account that don’t make sense…results over paying on your taxes and high bad debts. Each month you should be looking at your receivables can save you money in the long run.
2. Not Keeping Receipts
Many people through out the receipts, Dont Do it!!
Keep a box or bag in your car, put all business receipts in it.
Use a separate bank account and a separate credit card account for business
3. Not Recording Business Cash Expenses
Track all expenses related to running a small business so these costs can be subtracted from total income.
4. Not Hiring a Bookkeeper To Handle Your Accounting
As a small business owner you want to do this yourself, I understand, you think it will save you money but in the long run you may be throwing the hard earned money out. There are expenses you use that you don’t know are expenses that can be written off.
Paying a bookkeeper could help you with your reduce cost with your accountant, since they do all the prep work.
The Success of your business depends on the accuracy and organization of your paperwork.
5. Not Getting On The Same Wave As Your Tax Professional
Ask questions understand your needs… don’t just nod as an understanding…
Bottom line is, if you and your accountant speak the same language then she’s part of your team. She’s watching your back, and she’s providing advice you can bank on.