5 Common Accounting Mistakes Among Small Businesses
When your business is just getting itself up off the ground and beginning to soar, the last thing your small business needs is finance and accounting issues. In order to maximize growth, all aspects of your accounting process must be fully under control. Here are 5 common accounting mistakes small businesses need to avoid:
- Handling the books yourself.
As the small business owner, it is easy to want to be in all of the details – especially at the beginning. However, handing all of the accounting needs yourself is rarely a good idea. Your time is best served growing and shepherding the business, not crunching numbers all day.
- Hiring family to fulfill your accounting needs
Many small business owners fall into this trap. As the company begins to grow, it seems to make the most sense to have your spouse or a relative handle the books. After all, it is cost effective….or is it? While it may seem cheaper in the short term, in the long run you may be missing opportunities to more strategically handle your finances because your family member is under qualified. Not to mention, mixing family and business can often lead to unnecessary strife.
- Understaffing
When it comes to small business accounting and finance needs, do not assume that a junior staffer can do it all. Do not skimp. Hire the necessary senior accountant, bookkeeper, etc. to get the job done well and helping your business flourish.
- Over-investing in software solutions
Before purchasing accounting software for your small business, consider what accounting tasks your business actually does. Many software solutions are loaded with functionality, but if they do not apply to your business, then you have overspent.
- Mixing business and personal accounts
Remember to keep your personal and business expenses separated. Keeping details logs on all of your expenses in both categories will set you up for success – especially if the IRS comes knocking.
Feeling overwhelmed? You can avoid all of these accounting mistakes by giving NexGen Finance Solutions a call today at 214-629-0100 or email us at bryan@nexgenfinance.com. Our team has years of expertise in outsourced accounting in Dallas and will have your finances in order in no time.
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