Proper bookkeeping can be critical to the health of a new company.
While accounting might not be top-of-mind for many small business owners, proper bookkeeping can be critical to the health of a new company. Here are a few mistakes we see new entrepreneurs make that you can easily avoid with a bit of planning and accounting help.
Not Having A Separate Business Account
A common mistake we have seen small business owners make is the mistake of not setting up a separate account specifically for their business expenses. This can lead to cash flow problems, affect your taxes, and hurt your personal and business credit scores. Since you’re only allowed to deduct business expenses on your tax return, using your personal bank account could open you and your business up to considerable risk if you’re audited. We recommend always keeping your finances separated and never using your business credit or debit card for personal expenses.
Missing Key Tax Guideline Updates
It seems like tax season is coming around quicker and quicker each year! When you’re busy running your business, accounting updates may fall behind, which is a huge mistake some small business owners make. Planning ahead or taking advantage of small business tax services can definitely save you in the long run. Especially if you have employees, or you are paying yourself an employee of your own business, there are certain obligations you may have depending on which state you’re located in. A reliable bookkeeping service can help you navigate these changes and subtleties in the tax code to make sure you’re compliant.
Insufficient Business Insurance Coverage
For first-time entrepreneurs, business insurance can seem overwhelming. There are many options covering different facets of a business. One of the most significant and costly mistakes a new business owner can make is being underinsured when a catastrophe strikes. A small business accounting service can help you decide which types of liability insurance you need so you and your team are adequately covered if the unexpected occurs.
Contact Bowman & Company for Your Small Business Accounting Today
Bowman & Company CPA, PC provides all of our individual and small business customers with experienced, accurate, and affordable financial services. Our financial services aim at decreasing your taxes and increasing your net worth through responsible, timely, and accurate recordkeeping. We offer our services to clients throughout the Washington, D.C. metropolitan area including Maryland and Baltimore County, Columbia, and Howard County. For more information on our offerings, contact us online or call us at (410) 381-8121. You can also find us on Twitter, Linkedin, Facebook, and Youtube.