{"id":7712,"date":"2022-06-23T14:00:00","date_gmt":"2022-06-23T04:00:00","guid":{"rendered":"https:\/\/profitwise.com.au\/?p=7712"},"modified":"2022-06-02T11:37:56","modified_gmt":"2022-06-02T01:37:56","slug":"avoid-these-five-costly-accounting-mistakes","status":"publish","type":"post","link":"https:\/\/profitwise.com.au\/avoid-these-five-costly-accounting-mistakes\/","title":{"rendered":"Avoid These Five Costly Accounting Mistakes"},"content":{"rendered":"

A Canadian bank recently surveyed<\/a> over 500 small business owners about what they love and hate most about owning their own business.<\/p>\n

Unsurprisingly, flexibility and feeling in control ranked first in the \u201clove\u201d category. Meanwhile, almost 60% said bookkeeping was hands-down their most hated task.<\/p>\n

Most business owners understand that effective financial management is key to their success. But lack of knowledge, frustration, and even avoidance can add up to accounting mistakes that derail future growth.<\/p>\n

Protect your business and reduce your stress by avoiding these five costly accounting errors.<\/p>\n

Mixing Personal and Business or Professional Finances<\/h3>\n

From day one, business owners should have a separate bank account in which to deposit their income and pay their business expenses.<\/p>\n

It\u2019s also crucial to designate a business-only credit card. Come tax time, separate statements will make submitting claimable expenses quick and easy, while reducing the risk of a painful audit.<\/p>\n

Letting Accounts Receivable Slide<\/h3>\n

It\u2019s frightening easy to lose track of which customers have paid you and which clients are late. Implement a strict policy and schedule for tracking accounts receivable and pursuing unpaid invoices.<\/p>\n