Whether you are new to owning a business or have owned and run a small business for some time, there are many aspects that play a role in the accounting side of the business you may be missing. These common mistakes can put your business in jeopardy. There are many mistakes that are made more often than others. Mark Dicus & Company is here to share these common mistakes so that you can hopefully avoid making these errors in the accounting end of your business.
Overdue Accounts Receivable
When you start to actually make money after starting your new business, it is exciting. You would never want to lose any of that money because you simply weren’t organized. However, that is exactly what happens when you don’t keep track of your receivables. Whenever you get payment from a customer, it should be applied to the invoice and marked as paid. Sounds easy, but it can be easy to get behind if you aren’t careful.
Lost Receipts for Expenses
Keeping track of the receipts you use for your business expenses is the only real way to utilize them at tax season. You may think that you will remember what the charges were later, but it is easy to forget when a certain amount of time has passed. To help keep track of these receipts, you may want to incorporate an envelope system, use only your business card for business transactions and go through your receipts on a monthly basis.
Failure to Record Cash Transactions
If you are worried about claiming too much income at the end of the year, you need to keep an accurate record of your cash expenses. You don’t have a good picture of what you made throughout the year when you haven’t recorded all of the cash expenses throughout the year.
Doing Taxes Yourself VS Hiring an Accountant
There is definitely some savings that you can see immediately when you try to handle your own taxes. However, if you don’t know what you are doing, you could be missing out on deductions, credits and tax penalties that will end up costing you more in the long run. When you have professional help, they will know the ins and outs of the tax world and help to apply the right tactics for your situation.
Accounting Services in Menominee Falls, Waukesha, West Allis, Racine & Greater Milwaukee, Wisconsin
When it comes to owning and operating a successful business, you need to have the right tools in your pocket. There are several aspects to the accounting side of your business that can be difficult to constantly keep track of. When you rely on the accountants at Mark Dicus & Company to handle the accounting and taxes for your business, you are more likely to see your business grow and become more successful. We can help you make the most profit possible. Call us today to set up a free consultation to help you see how we can help you and your business.