Most entrepreneurs don’t get involved in starting a business because they simply love the financial end of it. Sure, every business owner wants to make a profit, but how many CEOs of small businesses have you met recently that rave about the joys of financial tracking and accounting?

That’s what we thought.

However, that doesn’t change the fact that the accounting must be done. No matter the size of your business, certain practices must be followed in order to keep your profit in the black and to avoid costly penalties from the IRS.

Here are three simple business accounting mistakes to avoid in 2016:

1) Failing to Back Up Your Information
This one may seem like common sense, but you may be surprised at how many small business owners forget to simply back up their financial data. Whether you are using a spreadsheet or are going old school and recording your finances on paper, keeping extra copies of your numbers is a wise step to ensure financial stability.

2) Mixing Business with Pleasure
This is especially true when it comes to start-up companies or small businesses. With the finances on a smaller scale for your company, it becomes tempting to simply use personal assets for the business, or vice versa, in order to reduce redundancy. DO NOT DO THIS. Not only does it make confusion more likely, there are certain write-offs and tax advantages, and even in some cases tax laws, that could be compromised by mixing your business and personal finances.

3) Taking on Too Much Yourself
Simply put, most business owners are more visionary than practical implementers. It’s important to play to your strengths, especially when in the earlier phases of business. White and Associates is ready and willing to help you with financial and tax services, allowing you to focus on what matters most: the customer.

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