5 accounting mistakes to avoid

Haven Accounting | 3 MIN READ September 2, 2018

Keeping your accounts in order is the most important thing that you can do to ensure your business and your profits are in a healthy position. Not only is it important for your goals and future plans to be based on concise and accurate data, but it’s also vital to get it right consistently so that come tax time, you’re well prepared to avoid any last minute headaches.

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You may think you’ve got all of your facts and figures under control, but have a read through the common oversights below and make sure you’re covered!

Mistake #1 – Lack of Organisation

You’d be surprised at how many businesses still lack some kind of efficient organisation system. Note:  having various piles of paperwork strewn about your office is not an effective organisational system!

If you haven’t gone digital yet, a streamlined filing process is an absolute must. Make sure you’re keeping receipts for all expenditures, keeping your books up to date, and noting expenses accurately on the day that they’re incurred.

Mistake #2 – Getting behind on paperwork

Following on from the first common mistake, poor organisation can lead to a lot of stress and frantic last minute searches for specific documents when you need them. It can be easy to put off sorting your billing until later if you’re busy running all of the other aspects of your business, but this is something to be avoided as much as you can. Delayed billing will result in unpaid accounts, increased debt and mistakes in invoicing – if you’re struggling to do everything at once, you’re much more likely to make costly mistakes.

Mistake #3 – Not delegating

Those costly mistakes are why you need to delegate your bookkeeping to an experienced accounting professional. Many business owners try to save money by just doing it themselves, but stepping back and realising that you are not necessarily qualified enough to make the most of your business from an accounting standpoint is essential.
Having a professional working across your finances also helps to prevent any data entry errors and ensures that your books are as up to date as they can be at any given time.

Mistake #4 – Not having a clear budget

Going into a project or plan without having a clear budget in place could prove to be more costly in the end. Failing to budget properly makes it harder for you to keep tabs on how your project is tracking and can make it almost impossible to rein in when it’s costing more than it should. Effective forward planning and budgeting can be time-consuming, but it will save you more money, more time and more stress overall.

Mistake #5 – Opting for the cheapest solution

When you’re trying to save costs and reduce your overheads, it can be tempting to choose an option that is much cheaper than the rest. Although price isn’t always indicative of quality, it’s important to invest in the best product for your business, which won’t always be the cheapest option. You’ll save considerable time and money if you begin with the product that is best suited to your needs – if you begin with a cheaper version that doesn’t work out, you’ll end up spending more to find an alternative.

Are you making any of these mistakes with your budgeting and accounting? It might be time to organise a catch up with one of our Haven accounting specialists to help you avoid mistake number three!


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