Accounting can make or break your business. Here are the top Orlando bookkeeping mistakes to avoid in order to grow your business.
Bookkeeping can seem unimportant, however, it’s one of your biggest secret weapons when it comes to small business profitability and growth. With the consistent and accurate account of your company’s financials, you can successfully manage and grow your business. The reverse can be said, though, without strong accounting practices in place, your business can fall apart. Here are the most common Orlando bookkeeping mistakes you should avoid.
Improper & Unorganized Bookkeeping
This is a common mistake found in small businesses. It’s easy to pile receipts to the side, forget about them and let small expenses go unaccounted for. Over time, these expenses will grow and get out of control, leaving you wondering where your money is going with no account of it.
Having a proper filing system and/or the right app, can save you a lot of hassle down the road. No expense is ever too small to go unrecorded! We want to make sure we record 100% of the activity affecting the business. This practice can potentially result in tax savings, as well as provide the necessary documentation if you were ever audited.
Putting It Off
Many small business owners will wait until the last minute to do their Orlando bookkeeping and accounting. This is mostly out of fear of doing something wrong but also because it isn’t seen as an income-generating task; however, putting it off will continue to delay a task that you don’t feel comfortable doing, don’t want to do AND will make the catch-up process unbearable.
If you were audited, you would need to provide records of all business-related expenses. The lines get blurred if you’re using your business accounts for personal use and vice versa. In some instances, the IRS may impose a self-employment tax since you haven’t kept a clear separation. Keeping personal and business activity separate will minimize the issues and allow you to accurately identify potential budget busters within the business.
Neglecting Sales Tax
There are many Orlando bookkeeping mistakes to avoid and one of the major ones small business owners make generally involve improper sales tax practices. Oversight in collection and reporting of sales taxes can result in significant fines and penalties.
Too many small business owners spend a lot of time trying to do their own bookkeeping. It can be a time-consuming process that requires a high level of concentration to make sure you consider all sides of the transaction and hiring an experienced professional will guarantee it gets done correctly.
If you’re making any of these Orlando bookkeeping mistakes to avoid (or you want us to determine that), it’s time to hire KEM Business Solutions as your bookkeeping service. We know what to record, how to record it, and the accounting changes that affect your business on an ongoing basis. We help take businesses to the next level with the help of good accounting practices. Contact us today to see how we can make your company more profitable!