Three Accounting Mistakes That Can Kill a Business

A long-time financial executive, Charles Schara serves as the CEO and president of CGS Consulting, LLC, a firm based in Alexandria, VA. When needed, Charles Schara provides support to his company's management and board to ensure clients receive help in activities such as finance and accounting at their businesses in the Alexandria, VA, area.

Here are three accounting mistakes businesses should avoid:

1. Skipping a budget: A budget is essential for staying in operation. Unfortunately, many small businesses do not do proper budgeting and often overspend as a result. Having a solid budget in place keeps business accounts organized and prevents companies from losing money unnecessarily.

2. Not including “no charge” items: When sending customers the invoice for free services, make the “no charge” items visible. This helps you justify charging for these services later, and it shows that you’re doing the customers a favor.

3. Not saving all documents: Even if you use only one credit card for business expenses, do not rely on your online statements. Any time you make a business purchase, keep the receipt to prove it was a business expense. Along with the receipt, make a note of how the purchase helped your business so you can recall the details later on.