Accounting services in Santa Rosa are a quintessential part of any business endeavor – be it large or small. Accounting is more than just addition and subtraction. Many small businesses make the blunder of handling their own money in the hope to save money, but end up making mistakes due to their lack of expertise in accounting procedures. Listed below are few accounting mistakes that can jeopardize your company.
Failure to Keep Records of All Expenses – It is extremely important for every business to keep receipts for all business-related purchases. If your company has a credit card statement, it is important to stash all your receipts in an envelope and scan them once a week. Failing to keep records of your business’s expenses can be a costly mistake. When you can show all your expenses including petty cash expenses, auditors are less likely to question or challenge your report.
Failure to Categorize Incomes and Expenses – Many business owners take the route of shoebox method of accounting. However, this is not a good choice for small businesses that have more than a dozen or more transactions a year. Every penny that comes in and goes out of your business must be assigned to the appropriate category. It is wise for business owners to stay on top of their accounting records so that they do not encounter errors. This will allow you to know who was billed and whether or not your customer has paid you. You will also find that the year-end tax preparation will be a lot smoother if you are up to date with recording all incomes and expenses.
Getting Behind on Paperwork – It is not uncommon for business owners to find themselves wearing many hats, and hence putting off paperwork for later. This can be rather risky as it is easy to get behind on important financial statements, sales tax payments, and even sending out invoices to customers who owe you money. Delayed billing often leads to increased debts. Mistakes in invoices will be harder to prove if they are raised late. That is not all! Your company may be held liable for both penalties and interest for filing important reports late. Oftentimes, businesses lose out on great financial opportunities since their books are not current.
Not Willing to Delegate–Small business owners can benefit from hiring experienced accounting services in Santa Rosa. Business growth can be hugely impacted if a business owner is unwilling to let experienced professionals handle accounting which could be outside their core competencies. In other words, if you do not know how to handle your accounts, you must be willing to hire the right people to do so. Expert advice is quintessential in maximizing income and minimizing taxes.
If you are looking for a reliable bookkeeping service in Santa Rosa, Virtual Jeannie Bookkeeping Services Inc. is a name you can trust. Call us today at (707) 664-1425 to speak to one of our accountants and get an obligation-free quote.