There are hundreds and thousands of small businesses all over the world. While there are many who find success and wealth in their small business, even more of these brave entrepreneurs find themselves struggling to keep their businesses open. An aspect of the business that many owners find complicated to handle is the bookkeeping process.
While some brave owners forego hiring an accountancy Essex located expert for the job because they prefer to handle the books themselves, others aren’t as brave to do so. It is better to let the accountancy Basildon based pros handle the job because one simple mistake can lead to a lot of financial trouble.
If you are still doing your own accounting, watch out for these mistakes before they end up costing you your small business:
1. Mixing Business With Personal Accounts
As an owner and also worker for your small business it might seem like a natural thing to use your personal account as your business account as well Doing this will make money management easier, right?
Sadly, as many accountancy Essex experts report, business owners who use their business account for personal use and vice versa find themselves confused when it comes to tracking their finances. Mixing business with personal just doesn’t work, so keep things separate so you don’t jeopardize your business.
2. Categorising Expenses Wrongly
If an individual does not have any knowledge or experience with formal accounting and bookkeeping practices they can easily categorise the business expenses wrongly. It is a must to accurately categorise all of the expenses and income of the business to properly measure its profitability. If certain items aren’t classified properly, this can cost the business a lot of money in taxes and other unnecessary expenses.
3. Bad Petty Cash Handling
Failing to keep track of your petty cash, no matter how small the amount may be is a costly mistake many business owners make. An accountancy Basildon based professional will know how to properly track and record all petty cash transactions to ensure that your business does not lose any money from the petty cash supply.
4. Lack Of File Backup
In today’s technology-dependent world, one simple server crash can result in the loss of important data. When all of your business’ financial records are lost and no backup has been kept these records might never be recovered. This can cost a small business a lot of money and possibly even valued clients.
5. Failing To Keep Receipts
All businesses should keep a copy of their receipts because it helps ensure that every expense is accurately tracked when filing for taxes. Having an organised tracking system will help your small business keep track of all your expenses and even save some money during tax season. As long as everything is accurately reported, your business will not struggle to file its yearly tax reports.
Worth The Investment
In the end, it is always better to hire a professional to do your bookkeeping instead of trying to manage it yourself. It is a small investment that will guarantee that the accounting process of your business is kept in proper order.
Being good at numbers matters if you want to rake in profits. Let AppleMedTax Consulting assist you with your accountancy Essex or accountancy Basildon needs. Contact us today!