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Bridging the gap between customer and financial data can help accountants avoid costly errors and inaccuracies in 2025.
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5 common accounting mistakes SMEs must avoid in 2025
02 January 2025
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12 minute read
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From the cost-of-living crisis to evolving consumer demands and an ever-growing list of industrial reforms, small and medium-sized enterprises (SMEs) have faced a host of significant challenges this year. While these major challenges demand attention, smaller, less visible problems can also quietly undermine their success. Accounting mistakes are among the most critical issues, which if unidentified or unaddressed, can very silently – but very quickly – eat into profits, weaken bottom lines, and create operational uncertainty.
But why are SMEs being affected by this silent affliction, and what is causing this? When SMEs rely on disconnected systems, they open the door to errors like missed invoices, incorrect tax calculations, and duplicated data. These seemingly minor oversights have significant financial consequences. Businesses with more of an integrated technology stack can streamline the flow of data, reduce inaccuracies, and enjoy unprecedented transparency and insight.
With 2025 on the horizon, it’s time to bridge the gap between customer and financial data and avoid these costly pitfalls. Here are five common accounting mistakes SMEs make and how to prevent them.
Manual data entry errors
Not only is manual data entry a tedious task, but it is also an error-prone process that can do major damage to the accounting of a small business. Typos, missing numbers, or misplaced decimals can lead to incorrect financial records, affecting everything from tax reporting to cash flow management. One missed decimal point can entirely change a financial statement, which can not only create internal issues but external problems, too, especially with authorities during tax time.
Adding an additional step of duplicating this process across separate systems like entering data into a CRM and an accounting platform only increases the chance of error and wastes time – something SMEs can ill afford. Automating the transfer of data between systems eliminates these errors and saves valuable time.
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Mismatched customer records
Consistency in customer records is vital. Without proper synchronisation between CRM and accounting software, a small business risks creating duplicate profiles or mismatched information, causing confusion in invoicing and payment tracking.
Any small business owner knows how vital client relationships are – especially today when economic pressures are making consumers more considered about which businesses they engage with – and these are costly errors that frustrate clients and hurt reputations. Centralised, synchronised records ensure that customer data is accurate and consistent across platforms, fostering smoother transactions.
Disconnected customer and financial information
Information silos are a common issue when CRM and accounting platforms aren’t integrated. For instance, a sales team might be unaware of unpaid invoices, or the finance team might not see recent deals or agreements. This lack of visibility can lead to awkward client interactions, such as discussing new sales opportunities with customers who have overdue payments. Integration between systems gives small businesses an accurate overview, ensuring everyone is on the same page.
Lack of visibility across teams
Businesses, irrespective of size, will never operate at their full potential unless teams are working collaboratively and communicatively. Sales and accounting teams have to work hand-in-hand, rather than independently. Working in silos gives critical details an opportunity to fall through the cracks.
Sales teams may not have insight into a customer’s payment history, while finance teams may miss updates on deals being closed. This disconnect can result in poor coordination, delayed payments, and dissatisfied customers. Bridging the gap with shared tools or integrated platforms ensures both teams have real-time access to essential data.
Inconsistent currency management
For SMEs that operate internationally, managing multiple currencies can be a challenge. In increasingly global markets, more and more small businesses are trading outside Australia. Without the proper tools, fluctuating exchange rates can lead to inaccurate invoices or financial reports, leaving businesses vulnerable to financial losses or confusion among clients.
From invoicing to order management to accounting, platforms like Zoho Finance Plus contain all the tools a small business needs to reduce manual errors, provide visibility, connect teams, and manage currency more efficiently. What’s more, it integrates with other critical business software, from CRM and business analytics to collaboration and HR.
Accounting mistakes may be common, but they’re far from inevitable. By investing in integrated solutions, SMEs can avoid these pitfalls and streamline their operations, reduce costly errors, and build stronger client relationships.
According to Zoho research, there’s a growing sense of optimism amongst Australian SMBs. In the next 3 to 12 months, almost half of Australian small businesses believe their cash flow will improve, while 29.3 per cent see a lot of growth opportunity in the next 12-18 months. As a new year arrives, and a new sense of optimism grows, small businesses shouldn’t let accounting mistakes hold their business back.
By Rakesh Prabhakar, head of Zoho Australia and New Zealand
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