Accounting disasters are not uncommon – and no one is exempt. Even big names such as Ted Baker and Thomas Cook have made headlines due to their problematic accounts. It’s enough to make any small business worry. After all, if those well-established organisations can’t get their numbers right, how do SMEs stand a chance?
But don’t worry. Here, we explore how to avoid the most common pitfalls that cause accounting to go wrong. And, with the knowledge to sidestep these problems, you can have faith that you won’t suffer the same fate as these larger businesses.
Keep on top of accounts all-year round
It sounds simple but don’t leave your accounts until deadline day. Otherwise it could end up being a last-minute attempt to fix mistakes and omissions – something which can be damaging and costly if not managed correctly.
File bank statements, invoices and expenses as early as possible. That way, you can ensure that you don’t miss anything. It’s much quicker and easier to do so using cloud accounting software rather than a manual method. You even have the option to file on-the-go with these tools.
Ensure all figures are accurate
Cloud accounting software will also ensure accuracy. Many of the accounting horror stories that hit the news can be traced back to numerical errors. For example, Ted Baker overstated their inventory.
You need to consider every detail. Amongst all the figures, a basic error may be lying there. If a number doesn’t look right, look into the reason why – even if it will negatively impact you. It’s better than having to deal with detrimental results later down the line.
Dedicate specific time to your accounts
It will be much easier to stay up to date with your accounts and make sure they are correct if you set aside dedicated time to complete them. If you do them sporadically, then you’ll be more likely to make mistakes and find it difficult to continuously update them.
But, as a small business owner, you may find it difficult to find time to devote to your accounts. You want to be running your enterprise, rather than dealing with the hassle and stress of accounts. That’s why it’s a great idea to outsource it to an expert accountant. You’ll be able to focus on your business, and guarantee your accounts are in check.
From monthly and quarterly management accounts to budgeting and forecasting, we can take care of all aspects of your accounting. The team at Nabarro Poole are incredibly personable too and have years of experience helping enterprises like yours give their accounts a boost.
To find out how we could help your business, get in touch by filling in our online contact form.