Starting your own small business is a tough task and making it a success and sustaining its performance is tougher. So here we are presenting 5 small mistakes that you should avoid while running your own small business.
#Not reconciling bank statements at least once a month
I know sometimes we get so busy that we don’t even check what is happening in our bank and it becomes difficult to check your bank details every single time going to the bank, but nowadays we have online banking. Reconciling a bank statement is one way to prevent embezzlement if you have employees
#Not tracking receivables and working on your collection system
Often money is lost by businesses from not collecting receivables than in any other way. Rule #1 in collecting receivables (money owed) is that the longer the receivable is owed, the less likely it is that you will collect. Setting up an accounts receivable collection system in which you assertively go after customers who haven’t paid can bring in revenue that might be lost.
#Paying too much tax – or too little!
Paying Tax is one of the most important thing but how one must pay is a big and important question. The expenses most small businesses often forget are typically travel expenses and meal and entertainment expenses. Keeping good at-the-time records of money spent and business purpose can help you through an IRS audit.
#The DIY mistake – not using professional advisersSmall businesses often start on a shoestring, and solo business owners often think they can muddle along without help. So if you don’t want to face problems in your recent started business hire a professional business adviser and try to talk to him and take advice every time.
#Not asking questions!
If you want your business to work flawlessly then keep asking questions every time you think of asking and every time you feel that there is something doubt about anything.