You don’t need an accountant Orlando to tell you a mistake can turn out to be more costly than you, or your small business for that matter, can afford at any moment. However, what an expert can do is help you avoid some of the common mistakes that business owners end up committing. At least, that is what an accountant in Orlando would do.
Orlando Accounting Mistake 1 – Not Keeping a Record of Receivables
An accountant Orlando will tell you that there is never enough time for most people to keep a track of receivables, of the amount that their customers owe them. Imagine if you have had a problem recording it, isn’t it also likely that once the payment has been received, it would not be marked as paid against the invoice? And when the tax time will loom near, you will be unable to comprehend the receivables report and the customer deposits you have been stranded with. The accountant Orlando will notice that you will end up wasting more time than was necessary and even overpay your taxes and have bad debts to your credit now that you have to update it.
Solution? An accountant Orlando will save you resources by following up on them on a monthly basis.
Orlando Accounting Mistake 2 – Cash Expenses and Receipts
As an accountant Orlando, I always tell entrepreneurs that they have to take note of all the expenses with respect to your business. Did you know that these costs can be subtracted from your total income at the tax time? Besides, it wouldn’t hurt to know your overall profitability of that year, would it?
You are liable to forget the expenses that have been paid in cash if you haven’t recorded them and, as a result, you will actually be overstating your income. A good accountant Orlando will know that a similar scenario can happen if you don’t track the expense receipt. A bank account statement will not tell you any details against any charges. Hence, if you don’t have any idea whether the cost is for business (e.g. supplies or meals) or a personal one that has been paid by the business card, you’ll are in for some troubles at the time of audit.
Solution? Hire an accountant Orlando to maintain a receipt book so as not to overlook the expenses. Plus, make sure that you don’t use your credit card for purchasing anything that is not related to your business. Another tip to make saving receipts a less time-consuming task is to have an envelope in your car/bag ready to put them in instead of your purse, pocket, or trashcan. Later, file them or make digital copies on a monthly basis and send them to your accountant Orlando.
Orlando Accounting Mistake 3 – Handling Taxes on Your Own
Our experience as accountant Orlando has taught us that when people are considering how much money they have already invested in their businesses, they usually try to cut down some by not hiring a professional for handling their taxes. This is a huge, huge mistake because not everyone is well versed in that field. You need an accountant Orlando who knows the tax laws as they keep changing, can tell you all the tactics to deal with your finances, help you claim for any deduction you are qualifying for, etc.
Solution? You can rest assured knowing that your prep work is being done accurately if you have someone, like the aforementioned accountant in Orlando, who is trained to advise you on this. If they are speaking jargon, you have to tell them to simplify it for you.
If you need more information about our Orlando, FL accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt.