Small Business Accounting Mistakes

Is your business “leaking money”?  Do you even know?  It is absolutely necessary that you avoid the following mistakes in order to run a successful small business.

1. not balancing your bank statements monthly
2. letting customers pay with 30, 45, or 60 day terms
3. not following up to see if invoices are received and scheduled to be paid
4. not checking invoices and vendor statements against products received
5. not balancing checks against invoices
6. not tracking cost of goods sold
7. not keeping the right levels of inventory necessary to meet customer demands
8. over paying on bank fees
9. capitalizing research and development instead of expensing it this year
10. not keeping track of all your business expenses

All of these areas in combination with strict budgeting and forecasting processes are crucial to assuring a smooth flow of a company’s finances.

Photo by Mathieu Turle on Unsplash