4 Common Accounting Mistakes

Here are the most common accounting mistakes small business owners make:

Here are the most common accounting mistakes small business owners make:
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January 29th, 2017
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I’ve made it a goal in 2017 to not only retain more clients, but to educate new and existing clients as well. I hope that happens every time I write a newsletter. I try to write about topics affecting current clients or the top issues in the accounting and bookkeeping business.

This month, I signed on a new client, who has a very successful small business that has skyrocketed over the last year. My client did everything herself, including her own books. That was fine when she first started, but her business has grown so big, so fast and is now extremely profitable (what a great problem to have)!

My new client hired Brigade Bookkeeping to manage her company’s books because she realized she was making some common accounting mistakes. She allowed me to share some of them with you, in the hopes of having others avoid making them. Here are the most common accounting mistakes small business owners make:

  • INCORRECT ENTRIES – Small business owners who try to do it all may find themselves entering the wrong numbers in their books. I find that a lot with new clients, who try to multi-task and do it all themselves, then don’t have time to go back and double check their numbers. At Brigade Bookkeeping, we love numbers and that’s all we focus on, so not only do we double check, but triple check our clients’ books.
  • MIXING BUSINESS & PLEASURE – I find a lot of small business owners make personal purchases on their business credit cards or through their business accounts. That’s a big no no and can result in incorrect bookkeeping and accounting.
  • INTERCHANGING PROFIT AND CASH FLOW – Do you know the difference between profit and cash flow? If you think the two are interchangeable, then you may want to consider hiring a company or someone to do your books. For example, if you make a deal and consider it a profit before it happens and write it in your books that way, then you’re confusing your terms and really should consider hiring a bookkeeper or bookkeeping service.
  • FAILING TO HAVE A LONG TERM VISION – It’s hard to be a business owner, company salesperson, marketing manager, and an accountant, creating long term plans for your business in each of these categories. By outsourcing your books, you can focus on other aspects of your business and leave the number counting and long term financial planning to us.

Everyone makes mistakes. But if you’re making simple ones because you have too much on your plate, then it might be worth considering outsourcing what you don’t love to do, like bookkeeping or accounting. Call our Brigade Bookkeeping team and we will focus solely on your books and avoid common mistakes that could hurt you or your business in the future. If you have any questions, feel free to email me.

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