Four Growth-Killing Small Business Accounting Problems and Solutions

Share on facebook
Share on google
Share on twitter
Share on linkedin
Reading Time: 3 minutes

As a business owner, making mistakes in accounting is something you literally cannot afford! Its growth-killing. It is understandable that you don’t register the intricacies of this part of operations. You may not be trained for it, but accounting problems can affect your profitability. They are a vital part of your fiscal responsibilities.

Small business owners often must do more to make sure the lights stay on! New businesses have to build both a customer base and prove their market potential. Other companies need to ensure high – or at least maintained – levels of customer satisfaction. With myriads of processes going on and hundreds of things to take care of, some details can slip through the cracks.

We mention the most common Accounting Requirements for Small Business issues below. Match them against your accounting activities because they could stop your business from thriving!

1.     Understating the Importance of Monthly Financial Reports

Some small businesses even skip the reports altogether. Here’s why that can create a huge mess for yours if you are one: you discourage potential financial backers from investing in your company! Any source of additional investment would want to see those monthly reports before they part with their capital. You cannot substitute it with a bi-monthly or semi-annual snapshot. Monitoring financial activities indicate to an investor that their money is used to its full potential. Moreover, it will also allow you to spot liabilities, including payables, oversights and slow-paying clients, much earlier.

Learn about small business tax preparation challenges

2.      Thinking you can do the Accounting Manually

Manual calculations introduce a big margin for human error. They also increase the time spent on bookkeeping. Instead, small businesses like yours should use accounting software. A brief search online will show you how many different kinds of software you can choose from. Don’t allow the volume to overwhelm you, though. Look for one that will fulfill your accounting requirements and has rave reviews.

Still confused? Then check if the software of choice is good for the following:

  1. Invoice generation
  2. Sales tracking
  3. Producing cash flow and financial statements and balance sheets
  4. Budgeting
  5. Managing contacts and tracking their histories
  6. Various methods of payment, including credit card
  7. Tax Preparation Services
  8. Inventory management
  9. Payrolls

Read about essential business’s cash flow management strategy

3. Getting your Accounting Software to Work for you

Say, you found the best software and purchased it. But if you aren’t using it to get the most value out of it, what good is it? Just as you leave your company open to accounting mistakes when you don’t use the software, you do the same when you don’t use it the right way. For other small businesses, not having personnel trained to use the software can be an issue. You have two options in such situations. Firstly, you can dedicate an employee to learn to operate the software using tutorials. They may get the hang of it – or not. Secondly, you can consult Accounting Firms to walk you through What Is Bookkeeping.

Learn how to protect your business through key man insurance

4.     Not Keeping Personal and Business Accounts Separate

This is crucial because it will help you identify the deductible expenses, which investments led to profit generation, and so on. Out-of-pocket spending can lead to accounting oversights. You could be paying more in taxes without even knowing it. Finally, imagine having to explain the mess during an audit. Right from the books to credit cards and all banking must be separate for your personal and business needs.

Learn why every small business needs a CPA to achieve success.

Incorrect financials never lead to positive results. The problems they can cause can balloon up enough to scare away potential investors or lose the existing ones. As a small business, you are much more vulnerable to those who may take advantage of these inaccuracies. Protect your business from fraud and stop making these growth-killing accounting mistakes! Learn how AKIF CPA help your small business grow through accounting and bookkeeping servicesPlease contact us by email or phone.

Subscribe to Our Newsletters

Crypto Tax & Accounting Newsletter


Cross-Border Tax Newsletter

Sign up for our Newsletter
Over 100 5 Star Reviews!
Based on 107 reviews
powered by Google
Annie Phillips
Annie Phillips
12:35 10 Oct 21
Turn around time was amazing on the project I needed done. When you don’t understand all the different forms... communication is key and you will get that here. They are there to explain what and why you need more
Meru Kapadia
Meru Kapadia
23:33 01 Oct 21
I usually don't write reviews much as everyone has different experiences, but definitely wanted to share the positive... experience I have had here and why I would recommend them to all my family, friends and co-workers.I got a referral for here from a friend, so thought of giving them a try over my old CPA firm. I have been going here for a couple years now and have to say they are top notch. They are always responsive and willing to work with me even when I am delayed. I generally like to ask a lot of questions and not once did I feel like they were annoyed by it and would very thoroughly and positively answer all my concerns with detail explanations. Even during the pandemic, they worked with me 100% virtual and it was seamless. Overall, I am very happy with this firm and will continue with them for the foreseeable more
Kevan Shah
Kevan Shah
21:45 01 Oct 21
I’ve been going to them for 3 years now for multiple of my businesses. I changed to them after I had problems with my... previous CPA firm and I’m so glad I did! Best decision I ever made for my businesses. They have saved me thousands of dollars over the years as well as deal with my immensely complicated tax filling issues. No matter when I call, they always help answer all my questions (and trust me I have a lot) and put my mind at ease on all my concerns. I feel as if I am family the way they take care of me. The quality of their work has not changed; very consistent and professional. It is an understatement when I say I highly recommend more
Maunil Shah
Maunil Shah
16:19 01 Oct 21
AKIF CPA is the best place for your tax needs! Saim has been easily available for my all my questions and concerns. ... Couldn’t ask for a better firm that provides excellent service and a familiarity with their clients. I always recommend family and friends to AKIF CPA!!read more
Shah Hussain
Shah Hussain
03:58 01 Oct 21
Hello AKIF CPA,I wanted to share my experience with you, your team and whomever may be reading this message. My most... humble thanks to you and your team for a being such great part of my success.You have done a fabulous job for us this year, and since you took over our books (during our most devastating times) you have literally taken weight off of our shoulders.Thanks for bringing everything up to date and also providing us with numbers or as you call it consultations, ahead of time so we could seal the holes.Great work!!!Shah more
Sumit Dalwadi
Sumit Dalwadi
04:57 30 Sep 21
The professionals at Akif have been absolutely amazing! Quick to answer all the questions I had and always available... to offer their more
Calvin R
Calvin R
20:21 29 Sep 21
I recommend these guys! I will be going back next year. They made everything simple and we understood what was... happening. There we issues with our taxes due to our previous accountant and these guys fixed everything. They answered our questions and service was always with a more
Ammoria Daniels
Ammoria Daniels
02:11 16 Sep 21
We contacted Akif with an urgent matter regarding corporate taxes. Akif immediately understood what was needed and... within days had everything ready to sign. The level of service we received was amazing and unmatched. Waqar expertise in trucking industry made our situation seamless. His communication was outstanding; I heard from him daily and could have been completed sooner if I was as fast as he was 😃 Highly recommended!read more
Joe Paneitz
Joe Paneitz
18:30 18 Aug 21
What an absolute pleasure to work with this CPA firm. My business is already seeing such a positive impact and growth.... I cannot believe I didn't connect with them sooner. This firm is helping in so many ways! 5 stars is an understatement! Thank you so much for your help AKIF CPAread more
Helptest ARCpoint Labs
Helptest ARCpoint Labs
15:02 18 Aug 21
The firm is quick, responsive, and has the latest technological software. Thus far, I have been with them for 3+ years... and will continue to work with them even after relocating. They make it easy even when I'm miles away. Would highly recommend more
Luz Tipaz
Luz Tipaz
16:06 13 Jul 21
Saim and his team are the best CPAs in town. I have been their client for years. All started when I needed help with... company structure with multiple companies and then accounting and Taxes. I have been very happy ever since. Thank you AKIF more
Maria perez
Maria perez
18:31 08 Jun 21
Me and my husband have been getting all of our personal Taxes, business Taxes, monthly bookkeeping, accounting and... payroll done with AKIF CPA. Recently, we had more stuff come up and had detailed analysis done on capital gains, single family rentals (SFR) and business disposition. You will only know how great this CPA company is until you have worked with them and given them a chance. Words can’t describe our experience. AKIF CPA gets the job done every time - very reliable, professional and more
Afnaan Amin
Afnaan Amin
22:14 02 Jun 21
Very good experience, we had unique situation in regards to cross border income as Canadians currently residing in the... US. Income on both sides of the border through completely different channels. Everything was very easy and completed timely, I also had lots of random questions and Mohammad provided top notch service along the way and even after we finished our taxes!! Highly more
Ryan Paton
Ryan Paton
10:56 08 May 21
I moved to the USA from Canada late 2018 as part of a promotion/relocation for work. For my 2019 returns, I used an... accounting firm recommended by the local Canadian social club in my city, which was a terrible experience. They were slow to respond to inquiries and would follow up in piecemeal requests which dragged out my return process over several months, often asking for information I had already provided.For the price I paid, I vowed to find better service. I found Mohammad online and decided to reach out. Mohammad was extremely responsive, took care of my US and Canadian returns as well as my wife's business returns in a timely manner. Overall, it was a very positive experience and I would recommend him to another in my more
Tuan Vo
Tuan Vo
01:59 20 Apr 21
I relocated to Texas from Alberta, Canada and needed a CPA to help me with my cross-border taxes as I was not happy... with the CPA that I used previously. During my interviewing process to find another CPA, I had good feedback from Mohammad as he was able to answer my questions regarding my unique tax situation with expertise, and importantly to me, in a timely manner. I decided to use his services for the current tax year and I have nothing but compliments for the work Mohammad provided. If you are in need of a professional cross-border CPA, I highly recommend reaching out to Mohammad more
See All Reviews