Table of Contents
Main Accounting Problems for Small Businesses
Small and medium enterprises often face difficulties in maintaining accounting records, which can lead to serious financial and legal consequences. Lack of experience, limited budget, and attempts to save on professional accounting services often lead to critical errors. Let’s examine the most common problems and errors, and propose solutions.
List of Main Problems and Their Solutions
1. Late Submission of Reports
Solution: To solve this problem, it’s necessary to develop a reporting deadline calendar and strictly adhere to it. Use reminder systems (electronic calendars, email reminders). If necessary, engage specialists to help prepare and submit reports. Understanding reporting deadlines and penalties for delays is critical.
2. Incorrect Recording of Operations in Accounting
Solution: It’s necessary to use professional accounting software that will help automate the accounting process and minimize errors. Conduct regular training for employees responsible for bookkeeping, or engage an accounting consultant to verify entries. Document all operations in detail, including primary documents.
3. Incorrect Tax and Contribution Calculations
Solution: It’s necessary to thoroughly study current tax legislation or consult with a qualified tax consultant. Use specialized software for tax and contribution calculations. Regularly verify the correctness of calculations and make timely adjustments.
4. Absence or Incomplete Primary Documentation
Solution: Develop and implement a document workflow system in the company that ensures complete and timely accounting of all operations. All primary documents must be properly prepared and contain all necessary details. Use electronic document management (EDM) systems to increase efficiency and security of document storage.
5. Incorrect Application of Depreciation Methods
Solution: It’s necessary to study current rules and choose a depreciation method appropriate to the nature of fixed assets. Consult with specialists on the correct choice of depreciation method. Maintain accurate depreciation accounting and reflect it in accounting records.
6. Lack of Knowledge About Specific Transaction Accounting
Solution: Complete specialized accounting courses that cover the specifics of these operations (VAT accounting, currency operations). Consult with an experienced accountant or auditor. Use specialized literature and regulatory documents.
7. Lack of Control Over Receivables and Payables
Solution: Implement a control system for receivables and payables in the enterprise, including regular analysis and monitoring. Develop a policy for receivables management, including setting payment terms and measures against non-payers. Regularly reconcile data with counterparties.
8. Insufficient Internal Control
Solution: Implement an internal control system that includes separation of duties, document verification, and regular inventories. Develop and document internal control procedures and rules. Conduct regular audit checks.
9. Ignoring Legislative Changes
Solution: Subscribe to newsletters and information resources dedicated to accounting and taxation. Regularly track legislative changes and promptly make necessary adjustments to accounting policies. Consult with specialists on current changes.
10. Using Unlicensed Software
Solution: Use licensed accounting software that guarantees security and compliance with legislative requirements. This prevents data breach risks and legal problems.
Optimization of Accounting Processes in Small and Medium Businesses
Optimization of accounting in small companies aims to increase efficiency, reduce costs, and minimize risks. Key optimization areas include:
Process Automation and Cloud Accounting
- Process automation – transition to online accounting. Using cloud services automates many routine operations – invoicing, payment accounting, report generation. This saves time and reduces the likelihood of errors. Choose a system suitable for functionality and budget.
- Document workflow automation – implementing electronic document management (EDM) speeds up document processing, reduces paper flow, and increases security.
Document Workflow Optimization
- Minimizing paper documents – transitioning to electronic document management will significantly reduce costs for document storage and processing.
- Document unification – developing and using unified templates for contracts, invoices, and other documents.
- Clear division of responsibilities – each employee should be responsible for a specific work area, which will eliminate duplication and increase accountability.
Skills Enhancement and Control
- Employee skills enhancement. Conducting training sessions and workshops.
- Conducting internal control. Regular reconciliations with counterparties, banks, and other organizations to prevent errors and discrepancies.
- Internal audit – periodic verification of accounting for compliance with regulatory requirements and identification of possible violations.
Accounting Services Outsourcing
For small companies, it may be more profitable to outsource accounting to a specialized company. This reduces costs for salaries, taxes, and workplace maintenance.
Choosing the Optimal Tax System
Analyzing various tax systems (simplified or full). Choosing the most appropriate tax system considering the company’s specific activities will help minimize tax payments. Consultation with a tax advisor is mandatory.
Conclusion
Before starting optimization, it’s necessary to conduct an analysis of the current state of accounting in the company. Identify weak points, determine optimization goals. Create an action plan. Don’t try to implement everything at once – start with small but important steps.
Don’t forget about regulatory compliance. Any changes in accounting must comply with current regulations. If necessary, consult with an experienced accountant or auditor.
If you have any questions, write to us at office@progressholding.pl
