Tips from TAP – Common Accounting Mistakes in Small Businesses – part 1

Bookkeeping in your small business doesn’t just involve keeping the books for tax purposes, but it is also an important device for saving money and identifying waste, fraud and theft.

  1. Organization
    In accounting, organization is critical. That means keeping receipts for all expenditures, using business credit or debit cards for expenses, keeping the books up-to-date, noting petty cash expenses accurately on the day that they’re incurred and not mixing personal and business finances.
  2. Getting Behind on Paperwork
    Small business owners tasked with wearing many hats frequently put off doing the books until the end of the week or the end of the month–or later.
  3. Math Errors
    The CRA often discovers math errors and corrects them for you. However, you can’t count on any agency catching your math errors. There are also other kinds of math errors that agencies can’t identify, and these can have a significant cumulative effect on your finances.

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