5 Mistakes Business Owners Make When Managing Expenses

0

We all know how we should be managing expenses, but sometimes our good intentions are forgotten in the busyness of, well, business. It’s easy to put a receipt aside and say, “I’ll deal with this later,” or do your own taxes so you don’t have to pay someone to do them. But the little shortcuts you take now could wind up costing you more in the end. Doing your own taxes can result in costly errors. Or putting that receipt aside could mean you lose it or forget about it, and then you can’t take advantage of a business deduction. Here are five things not to do when managing expenses.


5 Things Not To Do When Managing Your Expenses

By Procurify

Here are the top 5 mistakes business owners make when managing their professional expenses.

  • Combine Personal and Business Expenses

    By Procurify

    No matter how big or small your company is, you shouldn't combine your personal and professional finances. Combining them makes your finances a lot messier and difficult to track. 

  • Do Everything Yourself

    By Procurify

    You're an expert at your business, but that doesn't mean you're also an expert in accounting or bookkeeping. Leave that to the professionals. It saves you headaches and professionals are more likely to see areas where you can save money or deduct expenses. 

  • Throw Away Receipts

    By Procurify

    Sure, you get tired of both looking at and filing those little pieces of paper, but come tax time, those receipts are deductions-gold. Hang onto them, as they also help you determine where your money is going and if you're spending properly.

  • Ignore Cash Expenses

    By Procurify

    Cash expenses don't link to FreshBooks or other bookkeeping apps, so they're easier to ignore or forget about. But they still count as expenses, so it's important to keep track of them.

  • Forget Outstanding Invoices

    By Procurify

    Don't lose track of who you owe money to—or who owes you money. Cash flow can be difficult to predict in business, so stay on top of who pays you and when. Also, be sure to pay your invoices on time. 

Share.

About Author

With a passion for everything Digital Marketing, Nick Boariu is responsible for SEM, Web Analytics, Conversion Optimization, Content Creation, and wicked design! Nick brings an array of experience with backgrounds in Film, Design, Sales, Marketing, and Entrepreneurship.

Leave a Reply