4 Pitfalls To Avoid In Accounting

Every Wednesday at 11:00AM, Business Empowerment Network hosts seminars here at Office In America Co. We had a guest speaker Bryon L. Riley, who is a CPA, with more than 20 years of small business experience presented in one of our workshop seminars. He discussed the importance of having a CPA for your business. He is dedicated to help owners and decision makers maximize revenue, increase cash flow, and minimize taxes.

One of the most important aspects about running a business is having the finances in order. Having a certified public accountant, CPA is one of the best decisions to make while running a business. They will keep track of the financial records, taxes, and long term growth. Does your business have a certified public accountant? His firm provides outstanding service to their clients because of the dedication of mission, vision and purpose, MVP.

He mentions, as a MVP advocate every business should earn money, create value and make a profit. In his background, he had direct experience with car lot, junk yard, grocery store, real estate. Transitioning from an employee to business owner. He mentioned employees and business owners have different mindsets. Employees think about single tasks at hand. Owners wear multiple hats, as they have to know what is going on in every department in their business. They also have to track expenses to increase profitability.

Income statement is a financial statement needed to look back at to measure the financial performance over a specific period of time. While looking over your financial statement, business owners have to avoid the 4 pitfalls of Accounting which are tax structure, payroll, Human Resource and bookkeeping

The tax structure depends on formation of the business. Owners have to decide whether they would like to setup a partnership, a limited liability company, sole proprietorship, s corp, c corp or a corporation. To protect yourself, look into revenues and tax plans. While setting up the payroll for your business, you will have to cover taxes, and pay employees for the work they completed.

A common pitfall of human resources is the lack of support from executive Leadership, inexperienced human resources specialists and budget allocation. Scaling, hiring employees, what are the rules, employee rights, disabilities, wise investment to bring strong HR agency.

How are they able to engage on the clock in the company, social media habits, vacation time? A pitfall of bookkeeping is making sure is has an efficient software tool to handle all invoices, track investments, and understand rules to help with profitability. Government is the best bookkeeper around.

For bookkeeping, owners should have separate checking and credit cards for business and personal use. Should develop a process to track revenues and expenses. Properly match the invoice with the deposit. Set a budget such as advertising to monitor and see if you need to expand if not enough. Project and monitor performance.

Review your numbers on a monthly, quarterly, and annually basis to track performance and compare data. Some people do not know the difference between cash flow and profit. Cash flow is all cash going through the business and profits it the amount the company gains after all the expenses have been paid.

This event is proudly sponsored by Office In America Co.

Office In America Co. can provide essential business services such as business address, phone and fax number, live receptionist, co-working space, meeting rooms, private offices and more. We are located in Houston Texas USA to give your business the professional identity it needs. Learn more at www.OfficeInAmerica.com or +1 (713) 893-1400

All were discussed during the presentation. Feel free to join the next event, which is on the second and fourth Tuesday of the month. Important topics will be presented with new guest speakers. We host workshops every week to empower the business owner community. To learn more, visit: https://www.meetup.com/officeinamerica/