Four Risky Accounting Mistakes Which Could Harm Your Business

Accounting mistakes can play a large role in slowing down the growth of your small business. Unfortunately, mistakes are all too common, especially for start-up businesses. Here are four accounting mistakes which can cause substantial harm to your business:

Keeping Track of Your Receivables

As much as everyone enjoys getting paid, a surprisingly large number of people do a horrible job of keeping track of their receivables. Because of this, many people fail to track how much money they have coming in each year.

Discarding Expense Receipts

One of the biggest mistakes you can make as a business owner is discarding your expense receipts. These may not seem important immediately, but you will need these expense receipts when it’s time to file your taxes.

Refusing to Record Cash Transactions

We all love to receive cash as business owners; however, receiving cash transactions can get tricky because cash can be hard to track. This is where an accountant can come in. They have the ability to help businesses record their cash transactions.

Trying to DIY

There are many educational resources available which can teach people how to act as their own accountant; however, trying to do it on your own could be detrimental to your business if you don’t do it correctly. That’s why it’s always important for you to hire a professional if you have any bit of doubt as to your accounting abilities.

Image credit: Paul Cross