Rookie accounting pitfalls company owners should look out for

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Many companies have been brought down by the mistakes of their financial officers and accountants. While some business owners could dismiss small accounting mistakes as negligible, their frequency could create huge holes. And then, some mistakes are so egregious, they cause not only financial problems, but legal ones as well. Experienced accountants are wary of these pitfalls. It’s the younger accountants that need to keep their eyes peeled.


Take for instance the common act of mixing personal and company expenses. This is also an easy mistake to spot. While some company owners and execs may try to slip some of their vacation expenses to the company, experienced accountants know that letting this kind of dealing slide may lead to incredibly serious repercussions, especially if the IRS decides to get involved.

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It’s the responsibility of the accountants and financial officers of a company to educate business owners on the serious consequences of the organization getting caught mixing these receipts.


Another rookie accounting mistake is not staying up to date with the tax laws of the state. Experienced accountants know all too well that tax laws are updated every so often. The company should be notified of such changes, and in the frequency they occur. Staying on top of these updates means that the business can avoid paying the wrong amount at the right time and avoid massive fees and penalties.


Bharti Jogia-Sattar is an expert in financial and corporate management and real estate. She has more than two decades of experience as a financial executive and an accountant. For more financial tips, visit this page.