Even the most savvy business owners can make mistakes when it comes to the financial records and accounting required for your company. But mistakes with your business consulting and financial accounting can result in consequences like losing money or missing tax deadlines.
At The Quantify Group, we are here to help your business grow with our accounting and bookkeeping services in Philadelphia, PA. We offer financial solutions and outsourced bookkeeping services to businesses of all sizes, so you can spend less time number crunching and more time growing your business.
If you are making any of these accounting or bookkeeping errors in your business, call our team to see how we can help with your financial management and growth.
1. Incomplete Record-Keeping
Keeping track of your business’s financial records is extremely important. It helps you understand your company’s financial situation and makes sure that you follow the laws and regulations related to taxes.
If you do not keep accurate records, you might end up with inaccurate financial statements, miss out on potential tax deductions, and even face penalties. That is why it is crucial to keep complete and up-to-date records of your business’s financial transactions.
Implement best practices for record-keeping, such as using accounting software, consistently updating financial transactions, and organizing relevant financial documents. Outsourcing your bookkeeping tasks to a professional service like The Quantify Group can help establish accounting systems that will keep you error-free and ensure you have the right financial information when you need it.
2. Mixing Personal and Business Finances
When you mix your personal and business finances, it can be tricky to keep track of what you are spending and earning. This can lead to problems when it comes to figuring out how much you owe in taxes or how much money you have available to use.
Keep things simple and straightforward by using two separate bank accounts for your personal life and business expenses. You will avoid any issues and will have a clear delineation between any expenses.
It is a good idea to create a different bank account for your own accountants and business. This will help you keep a clear separation between your personal and business finances and make it easier for you to keep track of your business expenses.
3. Failing to Plan for Major Expenses
Another common mistake small businesses often make is failing to anticipate and plan for larger, foreseeable expenses, whether they are necessary equipment upgrades, the implementation of new software systems, or the expansion to more substantial premises.
This can lead to cash flow problems and force businesses to make reactionary decisions that may not be in their best long-term interests.
Project your business’s future financial needs considering your goals, market trends, and any upcoming major expenses. Set aside savings for these higher costs, unexpected operational expenses, or situations that could impact your bottom line.
4. Inaccurate Expense Tracking
Even the simplest tasks, like tracking expenses, can have big consequences on your accounting systems. If you find yourself missing expenses, misclassifying them, or failing to claim deductions, you likely do not have a clear overview of the financial health of your business.
Small business owners should keep track of their expenses to maintain a healthy bottom line and look closely at all financial reports to confirm they are accurate. Look closely at bank statements and ensure all expenses are entered into your bookkeeping software.
Small businesses can easily implement accounting software that helps track expenses in real-time, saving you the hassle of managing them after the fact. Make sure you review all your expenses to ensure accuracy and work with professional bookkeeping and payroll services, to categorize expenses and maximize deductions.
5. Neglecting Financial Reports
While preparing financial statements can seem like a waste of time, they are part of your accounting processes that can have the biggest impact on your decision making. Small businesses should have three key pieces of financial reports — a balance sheet, profit and loss statement, and cash flow statement. This can give you the best financial analysis of your company’s financial health, profitability, and cash flow.
When you have the right financial reports available, small businesses can make the right financial decisions based on accurate data. Without the right financial reporting, you might not realize how your company is actually performing, which can impact your short and long-term success.
No time for crunching numbers? If you are a business owner looking for professional accounting bookkeeping help, consider outsourcing your financial reports to bookkeeping services like The Quantify Group. We can assist you with your data entry and financial accounting needs and ensure you can understand the reports, identify patterns and trends, and improve your business strategies based on accurate financial data.
Avoid these mistakes with our bookkeeping and accounting services | Philadelphia, PA
Sometimes, with the right knowledge, you can correct your financial accounting mistakes and get on the path to business growth. But if you need accounting or bookkeeping services to support you, we are here to help.
Our expert team of accounting professionals in Philadelphia, PA is committed to providing practical accounting solutions and peace of mind. With transparent monthly fees and scalable pricing, we are here to grow your business and help you understand the ins and outs of accounting and bookkeeping.
Give us a call today or reach out and learn how we can help you with the best bookkeeping services in Philadelphia.