Accounting mistakes does not only expose your business to penalties and audits, it can also impede the growth of your company and even put it on a shaky ground. This is why it’s a practical decision to hire a competent Melbourne accountant instead of trying to figure things out, especially if you don’t have clue how to go about recording transactions, balancing books and complying statutory requirements.
To give you an insight on the importance of hiring a reliable Melbourne accountant, here are some of the most common accounting mistakes that you will want to avoid:
Failing To Updated Receivables
One of the most exciting parts of running a business is getting paid. However, many small business owners have trouble keeping track of their receivables.
Once an invoice is issued, a receivable should be automatically recorded – which means, your customer owes you a sum of money. It is best to work with a bookkeeper Melbourne or a Melbourne accountant to provide you an updated list of receivables and make it easier to determine which ones have been paid and which ones are outstanding.
What are the consequences of not staying on top of your receivables? You will not only suffer high bad debts, you will end up overpaying your taxes. With this in mind, make sure to coordinate with your Melbourne accountant on your receivables and require updating of payments on a monthly basis.