Most business owners understand that effective financial management is key to their success. But lack of knowledge, frustration, and even avoidance can add up to accounting mistakes that derail future growth.
Protect your business and reduce your stress by avoiding these five costly accounting errors.
From day one, business owners should have a separate bank account in which to deposit their income and pay their business expenses.
It’s also crucial to designate a business-only credit card. Come tax time, separate statements will make submitting claimable expenses quick and easy, while reducing the risk of a painful audit.
It’s frighteningly easy to lose track of which customers have paid you and which clients are late. Implement a strict policy and schedule for tracking accounts receivable and pursuing unpaid invoices.
Investing in a cloud-based accounting solution can make this a breeze by automating your monthly invoicing – and contacting late payers with a reminder email.
Tired of chasing down missing receipts and struggling to justify claims come tax time? There’s an app for that! Choose from numerous options which allow you to organize your business receipts.
Many of these apps generate expense reports that are easy to share or sync automatically with accounting software.
Effective accounting means managing day-to-day finances while making provisions for future growth. Software and cloud-based solutions offer easy ways to track your financials, but they also generate reports and provide analytic tools small business owners can use for future forecasting.
Familiarize yourself with the reports your software can generate to track long-term trends, identify and lower risk, and discover new ways to increase profitability. Talk to your accountant about which reports and metrics are most important for your particular business and how to utilize them.
Small business owners are rarely trained accountants. Don’t try to manage your company’s finances all by yourself. Collaborate with a trusted professional, invest in quality IT solutions, and spend some time familiarizing yourself with relevant tools and trends. You’ll feel empowered, which is step one to forging a more love-filled relationship with small business accounting.
Interstate Billing Service (IBS) has emerged as an industry leader in managing commercial and governmental accounts receivable by providing unmatched customer service. Founded in Decatur, Alabama in 1984, IBS has grown to serve a client and customer base with annual receivables processed exceeding $2 billion.
To learn how Interstate Billing Service can help you avoid costly accounting mistakes, visit our website www.interstatebilling.com or call 1-800-223-9146 and ask to speak with the Sales Department
.