Commingling Business and Personal Accounts
Let's face it; it is not good business practice to blend business and personal finances. Not only does it make it difficult to track business transactions and make cash flow management difficult, but it takes away a business's credibility. Creating a separate bank account for your business will make it easier to identify the difference between personal and business expenses and help your case if the IRS ever audits your business.
Forgetting To Charge & File Sales Tax
Before starting a business, it is important to familiarize yourself with sales tax laws and liabilities. This is vital so you don't neglect or forget to file non-negotiable aspects of your business.
Not Having a Budget
Every business needs to have a budget, as many small businesses have a limited cash flow, and it typically takes time for a new business to make a profit. In order to establish a budget, all expenses should be audited, and any unnecessary expenses should be cut. This will help ensure that your small business's cash flow is organized, easily comprehended, and stays within its budget, giving you a clear picture of how money moves within your company.
Failing To Track Contractors & Employees
Whether your business has employees, contractors, or both, it is vital to keep track of employments status, wages/taxes paid, and contractor expenses. This way, come filing time, there aren't any concerns in misfiling.
Misusing Petty Cash
Some business owners think of petty cash as extra cash and don't feel the need to save receipts or track how the money is spent. Petty cash isn't a business owner's personal wallet, and all transactions made using petty cash must be tracked to back up deductions.
All in all, bookkeeping is best to be left to accounting professionals. But, thankfully, if numbers and tax laws aren't your strong suit, many accountants would be happy to take over your bookkeeping for you. Are you looking for someone to manage your books? If so, contact me today; I would be happy to assist you! I am an Advanced Certified QuickBooks ProAdvisor and specialize in working with clients who have QuickBooks Online, QuickBooks Desktop (PC & Mac), QuickBooks Enterprise, and QuickBooks Premier. Located in Murrieta, CA, and servicing clients nationwide!