This is no-nonsense accounting advice for small businesses, like being sure to record ALL cash payments and ALL transaction info. Accounting for these issues at the outset could save you a lot of time and trouble.

This commentator calls these the five biggest accounting mistakes that small business owners make.

  • Not balancing your books to your bank account every month (the failure to do so often leads to more accounting and tax costs and even a tax audit)
  • Not doing the books often enough
  • Not recording cash payments can lead to thousands in lost tax deductions
  • Not recording sufficient detail about transactions, when everything is fresh and current (proper records here will save a lot of time and headaches at year end)
  • Trying to use an accounting software beyond your level of expertise