The high cost of accounting mistakes is a significant issue for small business owners and according to a recent National Small Business Association poll, major financial losses caused by accounting errors have affected over one-third of small enterprises.
The most frequently reported issues were mistakes in payroll (22%) and tax preparation (26%). (19 percent). Poor bookkeeping, excessive spending, and underestimating expenses were other problems.
These issues may significantly impact the financial performance of a small business. The NSBA survey found that accounting errors rank second only to sales reductions in the reasons small businesses go bankrupt.
While small businesses can take various measures to enhance their accounting procedures, hiring a knowledgeable and professional accountant is the best safeguard against accounting mismanagement. A competent accountant can identify errors and contribute to their avoidance. Taj Accountants small accountancy firms London is committed to providing quality small business accounting services.
Don't put off organizing your accounting until it's too late if you are a small business owner and the sooner you take action, the less likely it is that accounting mistakes will have disastrous financial effects.
How to determine if your accountant is improperly handling your money?
Are you receiving from your accountant the financial data you need to make wise business decisions? Do they deliver timely and accurate reports? Do they stay up to date with modifications to tax laws and rules? If not, your accountant can be handling your money improperly.
Here are a few indicators that your accountant is handling your money improperly:
1. You don't get financial reports promptly
2. Your reports contain errors
3. Your accountant is not staying current with tax law changes.
4. You're not getting the knowledge you need to make wise business decisions from your accountant.
Taj Accountants small business accounting firm that can help you get the accurate and timely financial information you need to make sound business decisions.