- March 7, 2021
- Danish Zafar
- 0
Accounts management for any business is an essential. It is not just about keeping the record of stocks, debit or credit. Keeping books helps in knowing the business behavior, profit, loss, liabilities, capital and much more. Business operators can easily manage and organize business with the help of accounts. Many small businesses are not much focused on managing accounts very well. They do not have resources to manage the whole accounts team so they prefer to hire the individuals doing the job. There are certain mistakes that these businesses and account managers make in general with accounts.
Not tracking reimbursements
Reimbursement is a common benefit that businesses offer their employees and sometimes received by clients as well. There are certain expenses that come up with reimbursement policy. Not keeping the track of these expenses is just like flushing out your money. Offering additional services to the clients other than your own products or services calls for reimbursement. When you are not adding them to invoice, it means you are giving these services or products free to them. The loss is a burden on business.
Do not care about smaller receipts
Filing for income tax return and no focusing on the smaller receipts is another major mistake. Smaller businesses have 70% smaller expense and receipts most of the time. When filing up the tax documents you can come up with these smaller receipts and on collecting, they will get a huge total for sure. All you need is to keep the track of these receipts and then receive the better outcomes.
No reconciliation
Reconciliation of the account books with bank statement helps in knоwing the actual financial health of the business. It is necessary to reconcile your books every time to understand the financials at the given position. The process can help with marking the bank mistakes and look out for the appropriate resolution of the issue.
Zero audit policy
Small businesses do not have a huge setup and run within a smaller limit so they do not go for the audits. It is another mistake they make and eventually get into the deep loss. The audits help to understand how much you have earned and how much you need to receive. Giving away the products or services on credit will never earn you anything. Audit of accounts will help you to know the range of credit products and services in the market so you can get them back and sustain your business.