As a small business owner there are a number of mistakes your accountant can help you avoid making that can lead to issues for you. Here is a list from Best Rated CPA Firm Miller & Company, of five important ways you accountant can help you avoid financial disaster:
1. Forgetting Receivables: Let’s face it. Not only can you get so busy you don’t have time to catch up on your invoices, but it can also be embarrassing to ask a client for money. Working with an accountant will ensure your invoicing is kept up to date and that anyone who seems to be lagging in payments is contacted and pays their bills. Remember you have already provided the service or products and should never feel awkward demanding your money. The more efficient you are with a P.O. and invoicing system the more quickly you will get paid.
2. Tracking Expenses: Keeping track of every receipt related to your business will help you have access to all of the information you need to track how much you are spending as well as to use for your taxes. When you ignore your spending and do not keep track of what you are spending you will be oblivious to where you can save money.
3. Recording Expenses: You not only should be keeping track of receipts but recording your spending as well. A real easy way to lose track of your spending is little bad habits such as “borrowing” money from the till and not taking note of it. This can also lead to much confusion is you have staff who can’t get the till to balance at the end of the day.
4. Doing your own taxes: Doing your own taxes will not only often raise red flags to the government but also have you miss out on some very legitimate deductions you can easily miss. An accountant will keep records to aid during an audit but more so help you avoid one by following the rules.
5. Being in the Dark: Smiling and nodding while your accountant or other business associates rhyme off a list of unfamiliar terms and situations is the worst mistake you can make. You have to have confidence in your accountant and know you can ask them questions when you are in the dark about anything that is happening with your business. You have to always know what is happening and remember that your accountant is there to provide a service. Part of that service is to explain your financials to you so you can make informed decisions and keep up with everything that is going on.
These are five of the most common mistakes small businesses can make. However there are many other issues your accountant might help you avoid based on your industry and rules and regulations surrounding your business.