Interstate Capital Reveals Biggest Small Business Bookkeeping Mistakes
More than half of all small-business owners can benefit from reviewing and implementing bookkeeping best practices.
EL PASO, Texas, January 8, 2019 (Newswire.com) - Interstate Capital, North America’s leading invoice factoring company, announced today the publication of it newest guide to its growing list of online small business resources. The latest piece, entitled “7 Essential Bookkeeping Best Practices for Your Small Business,” explores some of the most common mistakes business owners make when they’re handling their own accounting. The complete article is now available at www.InterstateCapital.com.
The series highlights some of the biggest challenges owners of small-to-midsize companies face, particularly those with cash flow struggles. The goal of the series is to provide practical advice for improving processes, profit, and growth.
According to Business Insider research, more than half of all small business owners are using a joint account for business and personal funds. This practice makes it difficult to prove the company’s financial status, including accurately reporting on expenses and revenue. That means the company could possibly have trouble qualifying for things like loans and lines of credit, and it also has tax implications, such as increased audit risk and missed deductions.
“Oftentimes, the company owner is responsible for handling business accounting, in addition to everything else he or she does,” said Sarah Williams, VP of Business Development at Interstate Capital. “Other times, it’s office personnel with no formal accounting training. This isn’t necessarily bad, especially when a company is just getting started, but the complexity of accounting grows as the business does,” she said. “At the same time, accuracy becomes increasingly important, too.”
Establishing good bookkeeping practices can mean the difference between a business running smoothly or running out of cash. Other best practices include prompt follow-up on outstanding receivables, leveraging automation/outsourcing and monitoring cash flow trends.
Williams says that companies can improve their cash flow with invoice factoring, a process which gives the business immediate payment for invoices.
“Factoring keeps cash flowing for businesses,” Williams said. “It also helps streamline the collections process and gives the company access to important data, which can be used to make better financial predictions.”
Businesses interested in leveraging invoice factoring can learn more about the process and get a free rate quote by visiting www.InterstateCapital.com/Instant-Online-Rate-Quote.
About Interstate Capital:
Interstate Capital purchases nearly $1 billion in invoices annually. Established in 1993, the company has successfully funded more than 10,000 growing companies throughout the United States and Canada, speeding up cash flow and improving profitability. Interstate Capital is a division of Triumph Business Capital.
Interstate Capital is presently accepting applications from B2B providers. Those who would like to speed up their client payments are urged to visit www.InterstateCapital.com for a free quote today.
Source: Interstate Capital