Statistics from the U.S. Small Business Administration reveal that about half of all new small businesses launched in the U.S. will fail within the first five years. What is the chief cause of small business failure? Poor financial management.
Sound financial management starts with an understanding of some basic rules of business bookkeeping, so here are 10 of the most common accounting and bookkeeping errors made by small businesses -- and how you can avoid making them.
1. Using the Wrong Accounting Method
2. Combining Personal and Business Finances
3. Misclassifying Workers
4. Not Performing Basic Account Reconciliation
5. Being Too Nonchalant About Petty Cash
6. Not Knowing the Difference Between Profits and Cash Flow
7. Using the DIY Method of Bookkeeping
8. Not Saving Receipts for Small Purchases
9. Not Implementing Adequate Internal Controls
10. Relying Too Heavily on a Paperless Work Environment
The money spent to hire a trained bookkeeper or accountant, even on a part-time or contract basis, will usually come back to the owner many times over given the time savings and all the mistakes that will be avoided. urBook$ can take on these tasks to avoid these costly mistakes made by many businesses. Our bookkeeping, bill pay and payroll services can allow you to focus on what you know best - YOUR BUSINESS! Call urBook$ today 469.304.0036 and get on your way to relief of those financial tasks that have been weighing you down.