Common Small Business Accounting Mistakes

Congratulations, you are a small business owner! While you may be a great manager and be an expert in the business you are in, accounting mistakes are common for small businesses. These mistakes can prove costly and hinder the growth of your small business. We at Verdeja, De Armas & Trujillo, LLC would like to give you some common mistakes to look out for when beginning your small business.

Common Small Business Accounting Mistakes

Not staying on top of receivables and payables – A business is constantly billing, invoicing and collecting payments. As a small business owner you have a lot to manage, so errors in receivables and payables are likely to occur. The best way to deal with this problem is to develop a reconciliation schedule where you review them regularly. One will likely catch any mistakes before they lead to problems.
Not recording cash expenses – It is common for small business owners to overlook their cash expenses. If you are making cash transactions, it is important to make sure these transactions are deducted. Failing to make these records will cause you to overstate income, therefore, overpaying taxes.
Not hiring a professional to handle taxes – Many small business owners try to save money by doing their own taxes, however this actually might cost you more in the long run. Tax laws change every year and it is difficult for the average individual to keep up with all the deductions businesses are allowed. In addition, most small business owners don’t have the time that should be dedicated to conduct a thorough tax preparation.
Not communicating with your business accountant – Sometimes accountants and financial professionals seem to speak a different language than their clients. If there is ever a time that you do not understand what your accountant is telling you, make sure he or she clarifies it to you. In this respect, you should also be learning from your accountant so that in the future you are more educated on the subject. At Verdeja, De Armas & Trujillo, LLC, we offer training and seminars to our clients. We want our clients to be able to communicate and understand what we are doing for them to the best of their ability.

Small Business Consultation

If you are thinking of starting a small business or already own a small business, it is important that you consult with a professional to assess your needs. We offer a wide variety of accounting services that can save you and your small business money in the long run. Contact us today for a free consultation!