In our last blog, we talked about some of the common mistakes that business owners make in regards to their accounting. Many business owners think that doing their own accounting can save them time and money but in reality, there is a lot that can go wrong when you do it yourself. In this blog, we would like to discuss some other common mistakes that business owners make and hope that you choose to hire online accounting services.
When business owners do their business finances, it is not uncommon for them to confuse these records with their personal finances. It’s hard to keep track of what is being spent on the business and what is being used in your personal life. Many business owners have had to close their doors because there is more money being spent on personal items than the business and the IRS does not like this.
Receipts are what can help find mistakes or gaps in your financial records and if you are not keeping the receipts for the business, losing them or mixing them in with your personal receipts, then you will never be able to find the mistake and correct it. The IRS may come to you requesting receipts and if you do not have them, you cannot prove that the money was spent on the business.
We are going to assume that you are not a mathematician so it is, therefore, safe to assume that your math is not always going to be correct, especially when you are in a hurry to get the accounting done so that you can move on to other tasks. If these mistakes are not caught in a timely manner then it can lead to catastrophic loss.
We hope that reading these common mistakes are making you think twice about not hiring online accounting services. Call RBQ for more information.