Top five accountancy mistakes

Top five accountancy mistakes

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Date12 Jun 2013
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Posted ByAdmin
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Countless small and medium-sized enterprise (SME) owners have bad book keeping habits. As a result, many are losing track of expenses and failing to properly manage finances. Revenue drives businesses, yet many entrepreneurs don’t treat accounts with the respect they deserve. Ditch your bad habits today to benefit your business tomorrow.

Wasting time

Opt for virtual expense management software to help you track your on-the-go spending. Too many business owners are manually tracking expenses, and making their accounts susceptible to human error. Plus, jotting down transactions, collecting receipts and spending countless hours logging every single transaction is a needless waste of time.

Instead, rely on business accounting services to do the work for you. Of course, it makes accountants’ lives easier if you keep an accurate, thorough record of your outgoings, income and recurring payments.

You have enough on your plate already - don’t waste any more time than is necessary to track your expenses. Enlist virtual and professional assistance to help you stay on top of your finances.

Over-complication

Every business is different, and will have unique expenditures. Don’t feel the need to make your records fit a cookie-cutter template. Your accountant will help you design a system that suits your particular enterprise. In turn, this will streamline your book keeping process and make things easier to understand and refer back to - a win-win for you and your business.

Inconsistency

Consistently categorise costs, otherwise they’ll be hard to keep track of. Avoid making things confusing for yourself later by classifying things the same way from month-to-month.

Clutter and neglect

These two mistakes are closely related. Many SME owner-operators allow receipts to pile up, software to expire and records to become outdated. Use a simple system regularly and consistently in order to ensure you’ve always got an accurate understanding of your business’s financial health. Procrastinating is understandable, as book keeping can be tedious, but bear this in mind: the longer you leave it, the more out-of-hand things can get.