Common Financial Mistakes that are Hindering the Growth of Your Company

Financial Mistakes Hindering Company Growth

Are you perplexed to see that your business growth is stunted? As a small business owner, you have big dreams for the future! But, it can be frustrating to see that your business isn’t growing as fast as you had anticipated. If you are experiencing slow growth, then right now is a great time to assess daily practices and identify the areas that are holding back the success of your company. Here are a few of the most common financial mistakes made by small business owners:

Getting Lazy with Financial Tracking

You know that money is coming in every month, and the bank balances are high enough to pay the expenses. Isn’t that enough information to see that your business is successful? No! Failing to keep up with regular financial tracking can be a death sentence for your company.

Most small business owners don’t have time to keep up with the regular bookkeeping and accounting tasks. As a result, these important items slip to the bottom of the priority pile, leaving the business owner in a situation where he is making uninformed decisions for his company.

If you don’t have time to keep up with accounts payable and receivable, then it is essential that you find the right bookkeeping services to handle the details for you. A small business bookkeeper can manage your financial tracking so that you can focus on the other responsibilities that you have within the company.

Mixing Business and Personal Expenses

It is possible that you are missing out on potential business deductions if your personal and business costs are mixed. Even though it might not seem like a big deal to use the same credit card, it is essential that you separate these accounts and keep clean records for your business.

Set up a bank account and credit card that is dedicated to your business expenses. Then, be diligent about using the right card for the right transactions.

Neglecting Tax Payments

A quick glance at the bank account might make you feel like it is a great quarter for your company based on the balance that shows up. But, are you planning for upcoming expenses? It is essential that you look to the future to ensure that you have the cash flow available to pay the bills.

For example, it might be deceiving to see a high balance in your bank account right before an estimated quarterly tax payment goes through. Consider the benefits of setting up a separate account to save money for these types of expenses.

Our team at Easier Bookkeeping is dedicated to helping you set your business up for success. Contact us to learn more about how small business bookkeeping services can help: (888) 620-0770

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