Don’t be a statistic: according to the Bureau of
Labor Statistics, about half of businesses in the
United States fail in the first four years of operation.
TAKE RISK
into Account
Want to lower your company’s risk? Focus on
acing your accounting—small businesses often
ignore common accounting risks that could
result in major losses.
Many small businesses make common accounting
mistakes that may jeopardize revenue. Your business
is your job, your source of income, and your personal
passion, which is why you should take every step to
protect it.
The Ins and Outs of Invoices
Keeping track of your receivables ensures that you can
reconcile what you are owed in an efficient fashion. When-
ever you send out an invoice, be proactive by calling the
client to confirm they received it. Then, follow up often to
ensure timely payments. You can also consider offering an
online payment system to help your clients.
THINK POSITIVE
Now that you’ve identified the risks, capitalize
on accounting best practices:
Î Î DECIDE BETWEEN CASH AND ACCRUAL. How
will you verify transactions: when they are
received or when the transactions first occur?
Î Î KEEP EVERY RECEIPT. The IRS requires
receipts for business expenses $75 or more, but
it’s a good habit to save every receipt related to
your business. Don’t forget about travel, gifts,
meals, and even supplies for your home office.
Î Î SATISFY TAX REQUIREMENTS. According to
the IRS, about $2.1 billion in civil penalties are
filed against business owners every year.
Î Î GO BACK TO THE DRAWING BOARD. Are your
methods lacking? Time to reassess. Don’t be
afraid to reexamine how your company oper-
ates to find ways to maximize revenue while
lowering costs.
Cashed Out
The majority of company expenses may be trans-
acted through checks and credit cards, but cash
expenses happen with businesses of all sizes
and types. Without the record on a credit card
statement or check being cashed, you may miss
a few cash expenses here and there. These small
expenses add up quickly, leaving you with less
capital and record of your spending. Make sure
you keep receipts for every cash transaction, and
think about using bookkeeping apps like Fresh-
Books or Wave.
Keep It Professional
Although you may be a financially savvy business
owner, turning over your books to a professional
accountant could save you more money in the long
run. Accountants are skilled in keeping track of all
expenses and tax obligations. These professionals
make sure you receive tax deductions and avoid
being penalized for underpaying.
Looking for more ways to reduce your small
business’s risks? Contact your relationship manager
at 855.274.2800 or visit snb.com.
RANKED BY FORBES’ 2017 “AMERICA’S 100 BEST BANKS” // CONNECT TECHNOLOGY FALL 2017 // SNB.COM | 21