As a small business owner, you’re likely to make many mistakes along the way. But unfortunately, accounting mistakes can be costly and difficult to fix. As a well-respected small business accountant in West Auckland, Stuart Snow has encountered and rectified many of these common problems.
Thinking Profit Means Cash Flow
Having a profitable business is definitely a good thing, but if your business doesn’t have any cash flow, your profits may not mean much. Good cash flow allows you to pay for daily expenses and also gives you buying power. Having all of your profits tied up in assets puts you at a bit of a disadvantage.
Not Separating Business and Personal
Yes, proper accounting can be time-consuming if you’re doing it all on your own. But that doesn’t mean that you should mix your business and personal accounting and financing. For proper record keeping, you need to ensure that business and personal finances are kept completely separate.
Being a Bit Too Relaxed When it Comes to Bookkeeping
No matter how small your business is, you should always be meticulous when it comes to bookkeeping. If you are lazy when it comes to recording certain sales and expenses, you’re going to end up with books that don’t balance, and this is very problematic.
Not Making Use of a Personal Accountant
Having a personal accountant to manage your books and ensure that your business stays on top of your expenses and income is important and often overlooked until it is too much to manage. Therefore, make sure you hire a small business accountant that personalises their service for your business and your offering, helping you develop a business plan, further business planning, forecasting, managing tax and much more!
Not Knowing What is Tax Deductible
Having insufficient knowledge about tax and what is tax-deductible could be costing your business a lot of money. Not filing your tax returns properly could also end up in you having to pay certain fines. Make sure you’re getting back your tax deductions!
Are you looking for a small business accountant in West Auckland? Allow Stuart Snow to assist you with a comprehensive range of accounting services, which will help your business thrive and remain above board.