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Accountants Survey Shows Common Small Business Financial Mistakes

Accountants Survey Shows Common Small Business Financial Mistakes

A recent survey of 500 accountants across the U.S. highlights some of the most commonly observed financial mistakes made by small business owners, including not being fully aware of the firm's financial situation at all times.

According to the survey, which was conducted by online accounting software provider Xero, 26 percent of accountants said the biggest mistake small business owners make is not having insight into their financials.

Another 47 percent said small business owners should make sure to communicate with their accountant once a month in order to ensure they are maintaining a solid financial position, while 22 percent said this communication should take place on a weekly basis.

"The biggest challenge that small businesses face is simply that the owners typically work in the business and not on the business, and for many that means only diving into their finances during tax time," Simon Gray, an accountant in Xero's network and managing partner of Gray Consulting, said in a release.

Confusion during tax time is another challenge facing many small business owners, as a recent survey from the Small Business Authority found 55 percent of these individuals do not understand all aspects of their tax returns.

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