7 Major Mistakes to Avoid as a Small Business Owner
1. Not Structuring Properly from the Start
Are you an LLC, S Corp, C Corp, or partnership? Ensure you're set up correctly, and don’t forget the critical Operating Agreement structure. Beginning with a strong foundation ensures a smoother journey ahead.
2. Only Having One Bank Account
One bank account for everything might seem easier, but successful business owners need separate accounts to enhance clarity in operations and finances and to build a stronger foundation for possible audits. It’s a smart move to consider.
3. Ignoring the Numbers Until it's Too Late
Instead of waiting for Q4, stay proactive. Regularly engage in financial check-ins, plan strategically, and set achievable goals. Stay ahead and keep evolving.
4. DIY Payroll Disasters
Paying employees in cash or managing payroll yourself can lead to significant errors. Payroll is not just about disbursing salaries but includes intricate reporting and information submission as well as harsh deadlines for the remittance of payroll taxes. By collaborating with experts, you ensure accuracy and save valuable time.
5. Low Engagement With Your Accountant
Your accountant is a valuable resource, and together, you can achieve clarity as well as data-driven insights. Take charge and understand your numbers. Working hand-in-hand with your accountant can lead to better decisions and future success.
6. Misguided Insurance Choices
Overpaying for the wrong insurance or being underinsured can be catastrophic. Research, ask questions, and make informed decisions to safeguard your business and protect what you have built.
7. Going Solo Without A-Team Adviors
No one succeeds in business alone. Build a robust team around you, including an accountant, attorney, insurance specialist, financial planner, and a bank that understands your business.
EVERY MISTAKE IS A LESSON, but avoiding them in the first place is a sign of a savvy business owner. At Accounting Plus and Insurance Plus, we're here to guide you every step of the way. Let’s work together to ensure your business thrives.