Top 5 Accounting Mistakes That Hurt Small Businesses in Cyprus

Accounting mistakes can cost small businesses thousands every year. In Cyprus, where regulatory compliance is strict and SMEs make up a significant part of the economy, proper bookkeeping is essential.

1. Mixing Personal and Business Expenses - This is one of the most common errors. It leads to confusion, inaccurate profit measurement, and problems with tax deductions.

2. Poor Record-Keeping - Inconsistent tracking of income and expenses makes VAT submissions and audits stressful and risky.

3. Not Reconciling Bank Accounts - Unreconciled accounts result in hidden errors and overlooked charges.

4. Ignoring VAT Rule - Improper VAT treatment, such as applying the wrong rate or missing deadlines, can lead to penalties.

5. DIY Accounting with No Oversight - Using spreadsheets or unverified software without professional review increases the risk of errors.

Avoiding these pitfalls starts with solid professional guidance. Contact us for a tailored accounting solution.