Save time and money: 10 accounting mistakes to avoid

Bookkeeping is crucial for any business. Whether you run your business in-house or use outsourcing, it’s important to be aware of potential pitfalls and know what to watch out for.

These 10 tips will help you get around:

1. Lack of transparency of accounts: Don’t know what is in each account and what makes up the balance? Can’t the accountant explain it to you clearly? That’s the problem. Transparent accounting is the basis of a healthy business.
   
   
2. Incomplete accounting: The accountant does not post or pair receivables and payables on an ongoing basis? Not charging all costs? This deficiency creates an inaccurate picture of the company’s financial condition and of any potential major problems.
   
   
3. Missing supporting documents for tax returns: Your accountant can’t give you the documents for your value added tax return or income tax return, therefore you can’t verify the correctness of the calculations? This is a serious problem that can easily result in penalties, late payment interest and additional tax liabilities, and thus unnecessary unforeseen expenses.
   
   
4. You don’t know the profitability of your business: Without this information, you cannot run your business successfully. Thus, you face the risk of working the whole year round but reporting a loss at the end of the year.
   
   
5. Sending tax returns late: Does the accountant send the VAT return at the last minute and the income tax return just before the deadline? This is unprofessional and may result in unnecessary sanctions. At the same time, there is a high probability that it may be incorrect, as it was prepared at the last minute, probably without a thorough check.
   
   
6. Lack of efficiency: The accountant does not look for opportunities to increase your efficiency or theirs, nor do they make processes automated and digitized? Nowadays, the digitisation and automation of accounting is a necessity.
   
   
7. Lack of communication: Does your accountant not communicate with you regularly, nor keep you informed about problems, important changes and deadlines? Good communication is the basis of successful cooperation.
   
   
8. Lack of control: Don’t you have a system in place to check your accounting and its accuracy? Without clear control mechanisms in place, the risk of errors and financial losses increases.
   
   
9. Missing data backup: The accountant does not back up the data and. in the event of any technical breakdown, there is a risk of losing important information? Nowadays, backing up data is a necessity to protect a company from unforeseen problems.
   
   
10. Insufficient professional qualification: The accountant is not sufficiently qualified and does not keep up with legislative changes? This can have a negative impact on your business. Team up with a professional who has up-to-date knowledge and understands the legislative obligations.

“I hope these 10 points will help you to keep your accounting and taxes, but most importantly your bottom line, under control.” Juraj Tobak , Partner TPA.

If you are aware of any errors and would like to change them, please do not hesitate to contact us via the form on our website. If you have an e-commerce project, contact us HERE.