This article is key reading for any small or medium sized business. In my experience these 7 mistakes are key to businesses paying over the odds for my services or any accountant.
Mixing business and personal spending is probably the worst sin for SME’s / owner run businesses, in my opinion. Poor record keeping and not reconciling your books on a regular basis is poor financial management but when there is a mix of personal and business expenditure this must be organised before the finance work can even begin. This means working out what actually should be included and what shouldn’t, but it is time consuming.
A recent example of a business owner passing me an envelope with three months’ worth of receipts, expecting me to sort through personal / business expenditure first, then record them into accounting software and then pull something resembling a set of management or financial accounts out the other end and unfortunately not liking the bill when the work is finished.
Organising your records regularly could save you a lot of money.