Bookkeeping mistakes can be costly for small business owners. In this video, we cover some common errors and provide tips to avoid them.
1. Failing to Plan for Taxes:
Many business owners only think about taxes at the end of the year. Instead, proactively plan your tax liabilities throughout the year to avoid surprises. Understand your tax rate and set aside the necessary funds regularly.
2. Not Understanding Payroll Taxes:
Paying yourself as a business owner involves understanding payroll taxes. Properly track and remit deductions like pension contributions and employment insurance to avoid cash flow issues and penalties.
3. Overlooking Tax Deductions and Credits:
Accurate bookkeeping ensures you don’t miss out on tax deductions and credits. Misclassifying expenses or not tracking them correctly can lead to higher tax liabilities and missed opportunities.
4. Failing to Budget:
Budgeting is essential for tracking your business’s progress and achieving financial goals. Set revenue and expense expectations to guide your financial decisions and measure your success.
5. Not Reviewing Financial Statements Regularly:
Regularly review your financial statements to stay informed about your business’s performance. Accurate and up-to-date information empowers you to make confident and informed decisions.
6. Not Leveraging Technology Effectively:
Utilize cloud accounting solutions like QuickBooks Online to keep your financial data up-to-date and accessible. Leveraging technology allows you to make informed decisions with real-time information.
7. Not Seeking Professional Guidance:
Professional guidance can be invaluable. If your financial information is outdated, inaccurate, or confusing, consult experts who can help you understand your data and make strategic decisions.
📈 Ready to Optimize Your Bookkeeping?
Visit our website to learn more about our bookkeeping services and how we can help you avoid these common mistakes. Click the link below to get started!
🌐 gauvreaucpa.ca/bookkeeping
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