8 Poor Accounting Practices That Can Impact Your Businesses

5000 II 8 POOR ACCOUNTING PRACTICES THAT CAN IMPACT YOUR BUSINESS Good accounting practices impact positively on business growth as well as result in happy customers and employees. However, 60% of the small business owners feel they are not very knowledgeable about accounting and finance. Lets look at 8 accounting mistakes that should be avoided. Equating Cash Flows To Profits Don't confuse cash flows with profits. Cash flows can also result in more expenditure. Thus, review your balance sheets to get a clear idea of your revenues. Ignoring Small Bills And Payments $4 Small bills and payments can add up to form large amounts. Thus, if ignored, you can end up with errors in financial reports or even end up paying more taxes than required. 3. Mixing Personal And Business Finances Avoid mixing personal and business finances to save time & to keep stress at bay while filing your taxes. You can even create separate accounts for different projects to segregate and manage funds efficiently. 4 TAX Delaying Tax Payments Business owners can get busy with day-to-day operations, leading them to gather all the bills and receipts on the last day of the tax filing deadline. 8 Failing To Track Labor Don't just associate tracking labor to accurate payroll payments. It can also tell you if the project is taking more hours than required or if employees are not logging in/out at proper times. Not Keeping Financial Documents For Up To 7 Years 1.6783 Many IRS stipulations say that business owners should keep PAY their tax documents for several years. It will help you at the time of crisis and help your accountant get all the required information in one place. 7 Not Hiring Experi- enced Professionals Taking care of your own finances might sound like a good idea, but it can cost more money than hiring a professional. An accountant can help you file an error-free tax return and apply the deductions you didn't know about earlier. 8. {} Using Inappropriate Software For Business </> Accounting software, such as QuickBooks, can automate Oquickbooks. many tasks, but a software that doesn't meet all your business requirements is of no use. List all your needs before selecting a software. References :- https://learn.g2.com/accounting-statistics https://articles.bplans.com/the-8-most-common-small-business-accounting-mistakes/ https://credofinance.com/10-poor-accounting-practices-killing-business/ Ace Cloud Hosting www.acecloudhosting.com .......