Posted by: RightMethod on 12/04/2015

Accounting Issues

Running a business is hard enough. Keeping customers happy, meeting payroll and marketing and strategizing effectively are full-time jobs. Don’t let nagging accounting errors or omissions impede your progress. Below are five accounting issues all small business owners need to look out for:

1.                 Working with a Professional – Hire a person who truly understands how to mitigate your tax burden. Let’s face it, by this point you are way beyond doing your own taxes. Sure, TurboTax is amazing, but hiring a reputable accounting professional will save you significantly in the long run. Not only do they help during tax time – the good ones are year-round sounding boards advocating for you.

2.                 Security – Financial information is very confidential and can be altered easily if the data gets in the hands of the wrong person. Make sure all of your financial information is in a secure, organized area.

3.                 Local Tax Regulations – There is plenty to worry about when it comes to state and federal taxes, but don’t forget about the local tax regulations. Not paying your city’s business tax can be costly.

4.                 Second Set of Eyes – Before closing the books each month make sure there is an entrusted pair of eyes double checking. Small issues carrying over from month to month can be brutal in the long run.

5.                 Leave a Trail – Keep good records and make sure that each number has an explanation behind it. One way to do it is to make sure all Excel numbers have formulas that trace back to the source data. This is an easy way to explain how a certain number was derived.

Sure running the business is the most important thing, but staying on top of accounting is imperative.

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