3 Common Accounting Issues in Company
It’s not your fault if your business have a problem. Moreover, you are not alone, many people out there who have the same business problem as you. When you first start a business, we do not just put the credit and debit as our first priority. Moreover, keeping records is not your expertise. But even so, ignoring the management report will bring you into the complex accounting issues.
Of the various accounting issues in business, many says “I wish I knew how many common accounting problems, so this may not happen”. But sometimes, some are already aware of the problem but they did not immediately deal with it. The reason is “I do not have time for it” or “I do not know how to handle it”
That’s why we’ll try a bit to discuss some accounting issues that are common in the business world.
- Not Staying on Top of Receivables
Getting paid will always be the fun part of doing business. Things that are not much fun is to track your receivables. While you issue an invoice, receivables will be recorded where it means the customer owes you money. When you receive payment from your customer, it shall turn into “paid” status in invoices. But in reality it is not that easy, and sometimes customer deposits in reconciliation since there is never enough time in one day. However, this can be overcome by using cloud accounting software such as Acumatica Cloud ERP to automate your accounts receivable process.
- Not Keeping Expense Receipts
Most business owners fail to keep copies of receipts for business expenses that can lead to issues of taxation, accounting and cash flow. Then how to overcome the problems of this receipt? Of course by saving receipts from all purchases and business expenses. This process probably is not practical, but with the use of ERP software features you can add your business purchases quickly.
- Not Recording Cash Expenses
It is important for a business owner to keep track of all expenses that exist in their businesses so that these costs can be deducted from the total income during tax calculations and maintain overall profit throughout the year.
Basically, we should always keep records on any expenditure or income that exist in our business. Although it sounds very complicated and very tiring, it is very necessary to do so that our business can still stand and thrive.