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Common Business Accounting Mistakes

Business Mistakes

When you start a business, there are many things to think about. What makes your business unique? Why should people come to you rather than going to your competitors, both big and small? Once you can answer this question, you’ll have your selling point which you can also make use of in your branding efforts.

Although branding is something that many businesses are cognizant of, there are certain aspects of running a business that goes by the wayside, such as accounting. Here are some common business accounting mistakes:

Lack of Planning

When you’re coming up with a business plan, one of the most important things you need to do is figure out where your funds are going to come from and where exactly they are going to go. But this isn’t only something that you need to do when you start a business. Every time you make any change to your business (such as releasing a new product or hiring new employees) you need to come up with a financial plan which shows exactly where the money for the venture is coming from.

Lack of Sourcing

When you start a business, you’re not just dependent on your savings for startup money. You can also get money from other sources.

  • You can ask people you know if they might be interested in investing in your business and partnering up with you.
  • You can also lookup grants and other sources of funding for small businesses online. You may think that applying for a grant is a long shot, but if you can present a good argument as to why your business should get the funding as opposed to others, you can increase your chances of getting funding in this way.
  • Crowdfunding is also another option that people make use of nowadays. You basically just create a website (or go on an existing crowdfunding website) to tell people why they should help you out and give them a reason to donate money for whatever you’re trying to do. This can be quite effective for non-profits in particular.

Basically, when you’re starting up a business or running an existing business, you need to keep an eye out for sources of funding and say “yes” whenever an opportunity presents itself. Contact us for more great accounting tips to help you start or run a business.