Over my many years as a financial coach, I’ve seen it all when it comes to money management or lack of. For many business owners, this area is one that gets avoided due to lack of knowledge, lack of systems in place, and an over dislike for going through their numbers.
I have built my business helping others keep their money management up to date and their numbers looking sassy and sexy.
There are a few things that are more common when it comes to money management mistakes. I wanted to share them with you in the hopes you can avoid making these same mistakes with your accounting.
Improper or no record keeping.
It can be easy to forget about or lose receipts, forget to track mileage or other “small” expenses if you have no system in place to track these important business expenses. Having a proper filing system in place will save you time and money when it comes to doing your taxes. It also makes it easy to provide information if you ever face an audit. Having accurate records of your income and expenses is essential for your business. Make sure you have a good filing system in place. If you don’t already have one, it’s time to set that up.
Keeping all money in one account.
If you run a business, you need to have a business account and a personal account. If the two commingle it will make things difficult to sort come tax time. Once you have your money in separate accounts, make sure you are reconciling your business account every month. It makes it much easier to figure out discrepancies earlier than at the end of the year.
Hiring inexperienced help.
When you look to hire someone to help manage your money you should never go for the “best deal” or the cheaper option. You will get what you pay for. When it comes to financials and balancing your accounts, the last thing you want is to have someone who has no idea what they are doing. This will cause more problems for you in the end.
It’s important to spend some time going through your business’ money system to determine whether you are making some of these common mistakes or if there are others you find.
It’s never too late to get systems in place and get those numbers sassy, sexy, and working for you the way you want!