Having good financial management is a must for any business. In addition to preparing and understanding your budget, it is also essential that you monitor your cash flow. If you don’t manage it well, you can run out of cash to pay the bills. Pan Am Airlines, for instance, was once a high-flying brand. But it is now gone and whilst the underlying reasons are complex these led to cash flow problems and the company ultimately ran out of cash.

Cloud accounting is fast becoming a necessary tool for small businesses. With the help of mobile phones and tablets, accessing your financial documents on the go can be achieved with cloud technology.

Despite the availability of these tools, only relatively few small business owners are using them. If you’re one of those owners who are resistant to the concept of this technology, it’s probably the right time for you to overcome your fears.

Here are the most important reasons your small business should embrace cloud accounting technology:

One challenging aspect of business is keeping the books up to date and getting it right. A simple accounting mistake can seriously damage your business.

Many business owners rely on their accountants in helping their business comply with taxes, payroll, bookkeeping and other accounting issues.

Listed below are some of the accounting mistakes that you must avoid, if you do the accounts yourself, to prevent significant damage to your business.