Accounting Mistakes for New Mexico Small Businesses to AvoidJune 7th, 2017 by Erick Robinson
Integrity has performed accounting services for small businesses across New Mexico for several years. During this time, we have heard several business owners list regretful decisions that they made while their business was either just starting out or in the growing phase. Accounting mistakes can put your business in a bad position, leaving you with debts that your fledgling company has no way of paying, or can cause you to waste valuable time in order to fix them. These mistakes listed below are some of the most common that we have seen small business owners make that could have easily been avoided.
Keep Track of Receivables
As your business starts to grow, so will your pile of receivables. These documents are sometimes the only proof your company will have that a customer owes your business money. Matching customer payments to the receivables can be a time consuming process, and it is far too easy to fall behind on this task. We have seen several businesses that, come tax time, are swimming in a receivables mess because of the lack of attention to detail. Our advice would be to consider accepting online payments, which can automate the entire receivables process.
Don’t Toss Expense Receipts
As a business owner, it becomes easy to swipe that business card and continue on with your day. But when tax time comes around, unlabeled expenses can be difficult to categorize. Was that $50.00 charge for lunch with a client or office expenses? Keeping a copy of your receipts is key to avoiding a high tax bill if you were to ever get audited. Keep an envelope in your car specifically for the purpose of keeping these receipts and consider purchasing software that will allow you to scan receipts into your accounting system.
Don’t Just Rely on Yourself
Many small business owners have found their way to our office after several months or years of trying to handle their accounting on their own. Typically, we are able to find deductions that they were eligible for in previous years that they did not claim. Relying on yourself for all of your accounting tasks may save some money in the short term, but in the long run it could cost your company a fortune. Also, the time that you spend on your own accounting is time that you could be spending improving your business. Hiring a bookkeeper is never a bad idea either, as they can help keep costs down when it finally is time to meet with your accountant.
Integrity is proud to serve New Mexico small businesses with our premium accounting services. We treat each account as though it were our own firm when we were first getting started. If you think your business could benefit from our services, please contact us. We look forward to hearing from you.