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If you fail to track outstanding payments, you’re storing problems for the future.

Cash flow is crucial for small businesses.

Customers who fail to pay up take up precious time and resources.

Blurring your personal finances and that of your company means you never have a clear picture of the financial health of your business.

businesses. Customers who fail to pay up take up precious time and resources.

It’s important that you don’t leave money on the table and keep a close eye on what payments are outstanding. Failure to have a payment billing process in place can mean the death of your business.

5. Human Errors

This mistake covers several areas, including:

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4 Errors in calculating costs or payments.

4 Having no process in place for bookkeeping, leading to items being missed.

4. Failing to Keep Track of Your Billing

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If you fail to track outstanding payments, you’re storing problems for the future. Cash flow is crucial for small

4 Bulk data entry, meaning that mistakes are more likely to happen. Many small businesses do all their accounting in one go rather than spread things out. This, in turn, leads to an increased chance that mistakes will happen.

While accountants are human and can make errors, they are far less likely to do so. They understand what systems you need for accurate accounting. They are also the experts when it comes to compliance with IRS requirements.

How To Avoid Making Costly Financial Mistakes

This is not an exhaustive list of common mistakes small businesses make when doing their accounts. The only way to ensure you’re in the best financial position possible is to hire a professional. They can advise you on how to track your finances and keep accurate records.

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Sources https://articles.bplans.com/the-8-most-common-smallbusiness-accounting-mistakes/ https://www.business.com/articles/small-businessaccounting-mistakes/ https://www.hiscox.com/blog/most-common-accountingmistakes-made-small-businesses-and-how-avoid-them https://www.goforma.com/small-business-accounting/ common-small-business-accounting-mistakes