ACCOUNTING FOR SMALL BUSINESS Joel Lewinson, Los Angeles Certified Public Accountant
Joel Lewinson • As a Woodland Hills accountant, Joel Lewinson has often had clients seek out his professional guidance only when a small preventable mistake has already resulted in a big cost. • Business accounting has its own set of challenges, • few challenges can be more devastating than errors and fraud • For any firm, cash is generally a concern • Slight errors can lead to poor financial decisions resulting in significant losses • Small but devastating errors are more common than one might imagine Avoid common accounting mistakes by educating yourself and hiring a CPA, like Los Angeles Certified Public Accountant, Joel Lewinson, to put preventative measures in place
ACCOUNTING FOR SMALL BUSINESS • Accounting errors and financial fraud are fairly common in small companies • According to the Association of Certified Fraud Examiners (ACFE), • over 30% of all fraud takes place in small firms. • the median fraud loss at these firms was $150,000 • In most cases fraud is discovered by accident or outside tip • Majority of these businesses did not have preventative or monitoring measures in place
ACCOUNTING FOR SMALL BUSINESS • Risk for fraud in large firms is low, but minor errors can be just as detrimental • A single unrecorded payment can result in hefty penalties for unpaid sales taxes • Such errors are common • Indiana University study • 60% of accounting errors are the result of simple bookkeeping mistakes or misunderstandings
ACCOUNTING FOR SMALL BUSINESS • Many factors make small businesses vulnerable to fraud and accounting errors • Companies may have small bookkeeping staff, or the office manager may have to do double duty as the bookkeeper • When you have only one person taking care of your bookkeeping needs, and no one to double check the work, mistakes are easily made • With only one qualified person performing so many roles, it’s unlikely that a financial audit will ever be performed to catch the mistake before it becomes an issue • Hiring a dedicated CPA will alleviate accounting errors as well as worries about fraud within your small business or big business
ACCOUNTING FOR SMALL BUSINESS • Although you, or someone at your firm, may be able to perform certain accounting activities, it’s safest to hire a dedicated CPA to provide business planning services. • Business accounting can get very complicated, especially if your company experiences sudden growth and you don’t want to jeopardize that growth with inadequate planning. • The cost to hire a trained accountant to consult with you will generally be covered many times over given the many costly mistakes you’ll avoid. If you’re looking for a Woodland Hills CPA, call the accounting office of Joel Lewinson at 818-593-6777, and he’d be happy to help you address these and other challenges your business may be facing.