Starting a new business is super exciting, but there are a few pit falls news entrepreneurs often make. Use the interactive game below to learn avoid these preventable mistakes.
To get started, simply click on any of the numbers below to navigate through the money mistakes you need to avoid with your small business.
Over-paying for complicated accounting software you don’t need (or at least don’t need yet). Many new business owners rush into buying tools like Quickbooks or Fresh Accounting thinking they are doing the right thing only to end up over-complicating their life and costing them thousands in unnecessary expenses every year.
Letting someone who doesn’t know your plan set up the chart of accounts. The initial set up of an accounting chart of accounts if done in a way that doesn’t align with the business vision can lock the owner into years of meaningless reporting that provides no actionable insight into how the owner can make the business more profitable.
Ignoring the importance of your role in the financial process. Business owners understandably can feel overwhelmed with all the accounting stuff and mistakenly believe that hiring an accountant or a bookkeeper to look after it for them. The truth is no one will care more about the profitability of your business than you will and you can’t outsource that.
Not setting a financial plan for your business or if they do establish financial goals while writing a business plan, not keeping the financial plan fresh and up-to-date as a living document and tool that helps them course correct along the way. Too many business owners fall into the trap of focusing all their effort on the bookkeeping around what happened in the past and too little effort on the financial planning tools that will make them more money.
This mini-course was created by Carolyn Scissons. Carolyn is the owner of Finance Learning Lab. She holds a CPA, CMA, PMP, CIA designations along with holding an MBA degree. You can reach her anytime at Carolyn@FinanceLearningLab.com and be sure to subscribe to the Finance Learning Lab YouTube channel.