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Four bookkeeping errors that small businesses made

In this article, we will discuss about the four accounting errors that small business owners often made in the first few years of operation.

1. D.I.Y

Small business owners need time to focus on important tasks however many spent more time doing accounting. We understand that money management is important but you don’t have to be the one doing it. You can easily delegate this task to a professional with good accounting and law background knowledge. He/she will double check and ensure that it is error-free.

2. Going for the lowest and cheapest

I know it is important to cut costs as low as possible but what you pay for is really what you get. The difference between ordinary and extraordinary is a little extra, so for example, just spend a little extra to get a quality accountant rather than the cheapest one. Always do your research before spending on business services and items that have a useful life of more than a few months.

3. Not negotiating with your vendors

Many small business owners often buy items for their business from the same vendor months after months, which is good in a way because it allows both parties to build a relationship. However, they often “forget” to negotiate with the suppliers for a cheaper price or longer payment terms, which will ease their business cash flow.

4. Unable to keep track of receipts for minor purchases

You may say the keyword here is minor, but a lot of minor will become major. You always want to have a poof of receipt especially when you want to claim the expenses.

For more information on small business bookkeeping don’t hesitate to contact us at mas accountants, the original accountants for small business, based in Sydney and Melbourne.