Small Business Tips From A CPA

I invited Niedra Johnson, a Certified Public Accountant and Certified Financial Planner to give us a quick run down of the most common mistakes she sees small businesses make from a CPA’s point of view.

Here is what she sent me:
I find that often small business owners will come to me after they are already in trouble. The best thing they can do is come to me before they start their business, or at least in the very early stages. When they come to me in distress, sometimes I feel like a doctor trying to revive a patient that has never even had a check-up! So I’d say the top mistake is waiting too long to obtain a CPA who can be such a vital part of your business plan.

The other common mistake I see is that business owners too often mix personal expenditures with business expenditures. You shouldn’t be using the company accounts to pay for personal items that are not business related. Such as home furnishings, or clothes for the kids etc. You must keep your accounts separate, and only use your business accounts for business. If you find yourself needing to use the business account, then it might be that you need to pay yourself more!

Thanks for that input Niedra! I know you had mentioned several other items to keep in mind, so hopefully we’ll get more tips and input from you in the future!