04/08/2021 0 Comments
4 MOST DANGEROUS ACCOUNTING MISTAKES - NR. 3.
This week we are looking at the 4 Most dangerous Accounting Mistakes for your small business.
Confusing Cash Flow and Income
Not all of the money that you acquire means it’s the sum of the money that you make.
Although £100,000 in income seems impressive, but if you spent the £30,000 on equipment, insurance, and workers, you're left with a £70,000 profit.
You'll then have to pay tax on your gross profit, resulting in a reduced net amount.
It's critical to understand not just how much money comes into your company, but also how much money leaves it.
New business owners frequently make the mistake of getting carried away with gross numbers, which rapidly gets them into trouble. It's critical to be anchored in reality and know how much money you're making in order to avoid overspending.