4 Small Business Mistakes A Good Bookkeeper Can Solve
Small business owner – Every small business has its ups and down. Truthfully, even large corporations go through successes and failures, whether it’s due to poor management or bad product launches. But, small businesses are more vulnerable because budget is tight, and the stakes are high.
Mistake #1 a Good Bookkeeper Can Help Solve
Combining both personal and business funds is something many small business owners do. It’s even more true for those who’s business isn’t incorporated and they work as sole proprietors. There’s no distinction between them and their company. For example, a business owner pays their suppliers thought their personal checking account. Or if personal assets such as a car is used for business purposes, for example a florist using his personal car to make flower deliveries. How do you report mileage? How do you account for gasoline used for business?
Mistake #2 a Good Bookkeeper Can Help Solve
Keeping track of transactions is a big one. In the midst of trying to build a business, an entrepreneur is busy making end meet. There’s so much focus on sales, purchases, management and everything else that goes into it, that many times it’s hard to keep track of what’s coming in and what’s going out. A good bookkeeper can make sure you track your invoices, appropriate the right credit amount to the right clients, pay your invoices on time and the like. It’s data entry in the best way!
Mistake #3 a Good Bookkeeper Can Help Solve
Without a good bookkeeper, a small business owner can overstate income which results in more taxes owed during tax season. Entrepreneurs tend to forget to reimburse themselves for expenses paid from their own personal funds. This technically means they’re lying about their income, in other words overstating their income.
A good bookkeeper can ensure a small business owner doesn’t cheat themselves out of funds by making sure to write off the expenses the paid with personal funds.
Mistake #4 a Good Bookkeeper Can Help Solve
Forgetting sales tax or how to properly account for them in a journal entry as a debit to the accounts receivables asset is important. Different states have different sales tax percentages. For example, 6% to 8% is the common sales tax figure for Florida. Oversight in collecting or reporting these can mean significant fines and penalties.
Plus, a small business owner may even pay more a higher amount due to incorrect reporting, cheating themselves out of hard-earned income.
Call a good bookkeeper in Miami at 305.868.7620 for more profitability.