1. Mismanaged receivables. This can result in an inaccurate picture of where the firm’s finances stand, lead to cash flow problems, and create headaches at tax time. One solution is cloud accounting, which lets a firm bill its clients or customers and maintain records from anywhere. And there is now software that automates billing, late notices, and online payments.
2. Failure to carefully file receipts. When you look at a bank or credit card statement and cannot figure out a charge or debit and can’t locate the receipt related to the expense, it is a sign of weak controls and an omen of nightmares at tax time. There now is software that lets you take snapshots of receipts so you can file them digitally.
4. Not using a professional tax preparer. Do not do your own taxes. Good tax pros are current,
find deductions you don’t know about and know
how to avoid sparking IRS and audits.
5. Not using your CPA for key business decisions.
Getting your accountant’s opinion or help on important business decisions such as hiring, large purchases, software upgrades, securing business loans and certain financial transaction& can save you more than the advice costs
Source: Isaac M. O’Bannon, “Don’t Make These 5 Mistakes,” www.cpapracticeadvisor.com/news, 1/1/16