When growing your business, the last thing you want to do is make a mistake that could end up costing you, but sometimes it’s not very clear what the best option is in a given scenario. When it comes to small business accounting, many business owners take the task upon themselves to complete, but that’s really a job for a professional accountant or bookkeeper. There are a number of mistakes one could easily fall into when trying to tackle accounting by themselves. Take it from us at SmarTax LLC in Pembroke Pines, when it comes to accounting, seek a ta accountant near me.
Four Accounting Mistakes To Avoid
When it comes to accounting mistakes, it’s easy to fall into a few traps that many people initially think aren’t a problem. In truth, making these mistakes can cost a lot of money, setting you back and making it difficult to recover. Don’t make these mistakes yourself and let us share what we can so that you don’t have to take it trial by fire.
- Not hiring a professional
- If someone you knew had to have their appendix removed, would you trust yourself to do the procedure? Hopefully not unless you’re a trained surgeon. The same is true here. While your appendix isn’t on the line when it comes to accounting, your wallet certainly is, and that can be a serious resource to gamble with if you’re not a trained accountant. Having a professional doing your books is one of the smartest investments you can make to ensure your finances are well-handled. When it comes to hiring, try to find someone licensed by the National Association of Certified Public Bookkeepers, as you’ll know with confidence that they’re capable of the task. If the cost of hiring a bookkeeper seems too much for you, remember that hiring a part-time, remote bookkeeper can be a more affordable option if need-be.
- Not tracking business costs
- If you aren’t accurately tracking all your business transactions, then you need to start immediately. Inaccurate financial tracking can potentially cost you serious money and make other financial tasks a headache to complete. This is especially true during tax season, where you could lose hundreds, or even thousands of dollars. If you aren’t tracking your finances, you wouldn’t even know what you were losing.
- Mixing personal and professional finances
- For small business owners, this is such an easy pitfall to stumble into. First, it can also cause tax season to become a headache. You could easily miss transactions you could otherwise write off. It can potentially make it difficult for you to apply for a loan if a provider wants accurate information on your business transactions. If this is something you’re already doing, it’s a habit you want to break immediately. For one, you should absolutely have a separate bank account for your business if you don’t already. Consider also getting a business credit card that you can use where you might otherwise be tempted to dip into your personal funds.
- Not planning for tax season
- Remember those times where we mentioned other mistakes can cause you to go through a real headache when it comes time for tax season? Those issues doubly apply here, but it also just comes down to accurately and diligently keeping track of all your transactions. Keeping tax season in mind at every point in the year and properly organizing your documents appropriately can make doing taxes a breeze. It doesn’t need to be a nightmare, and if it’s handled appropriately, it won’t be.
Finding A Tax Accountant Near Me for Small Business Accounting
Have we convinced you to consider getting help from an accountant or bookkeeper? All of these pitfalls we discussed are things a professional can help you avoid when it comes to small business accounting. If you life in Pembroke Pines and want to find a tax accountant near me, contact us today. We at SmarTax LLC can help make tax season easy as pie and won’t let you make those easy accounting mistakes.