Common Mistakes People Make In Small Businesses
Small businesses are not well-equipped with solutions to deal with a financial crisis. In fact, due to a lack of proper knowledge, they land themselves into a financial crisis, which can be avoided by trusting the expertise of an accountant.
Hiring an accountant can save a great deal of trouble, time, and energy for small businesses, allowing them to focus more on their growth and work on building profitability for their company.
To help you avoid some basic errors that could prove to be costly, WD Accounting Services has put together a list of the most common mistakes people make in small businesses.
1. They start the business without consulting an accountant
Initially, they do not consult accountants about how they should start, but when tax time comes around, they start looking for an accountant to file their taxes, but at that point, their books need to be cleaned up, and their banks need to be reconciled.
2. They don’t open a business bank account
They start using their bank account for business, mix up things and put themselves at risk of losing some expenses, which results in them having to pay extra taxes.
3. They don’t consult an accountant on how they should pay themselves
Accountants are well-equipped with ways and techniques to help you choose the right way that will lead to paying fewer taxes, but small business owners need to connect with the accountants to resolve such issues.
4. Not registering with GST/HST account
Not registering GST/HST at the right time will make them pay penalties and lose tons of money on paid HST. It is best to avoid such a mistake.
5. They don’t know how to choose the right accounting software for their industry
True, not everyone is tech-savvy, so it is recommended to hire a professional who can set up the chosen software properly and keep up with the industry’s evolving trends.
6. They don’t know how to manage their cash flow
Due to a lack of record keeping, small businesses end up owing a big amount of taxes, which they cannot pay. For this reason, consulting an accountant on how to manage cash flow is essential for any industry.
To avoid these and other mistakes, reach out to the experts at WD Accounting Services.
We do bookkeeping for small businesses, specializing in construction accounting, tax filing for individuals and businesses (sole proprietorship and corporations), payroll, business plans, and virtual CFO services for medium-sized businesses.
For a complete list of our services, please click here. If you have any questions about tax accountants, we’d love to hear from you. For more information, please call us at (613) 501-1244 or email us at email@example.com.