I’ve been helping people with their bookkeeping for a few years now and I’ve seen it all. The good, the bad, and the ugly. There are a lot of ways to take care of your books and set yourself up for success, but there are also a lot of mistakes that can harm your business finances.
The most common bookkeeping mistakes I see are:
- Not reconciling accounts. This is a MUST. Set a reminder on your phone right now to reconcile on a monthly basis.
- Mixing business and personal expenses. If you’re making this mistake, stop reading this post and go open a business bank account. I cannot stress enough that you need to separate the two.
- Thinking that the books can be ignored because your bank balance went up.
- Ignoring finances altogether…how about NO!
- Missing tax deductions – including home office expenses and mileage are some common ones!
- Not keeping or organizing receipts. See this blog post for details on how to keep track of records.
- Not hiring a CPA for tax filing.
- Ignoring sales tax.
- Mishandling cash transactions.
How can you avoid these? Some you can do on your own – today! You didn’t know that you should separate business and personal expenses? Now you do and you can start. Some of these are fixed with a mindset shift – no need to fear those finances, focus on how useful they can be. Others of these require your action – and a bookkeeper!
We’re here to help you avoid these mistakes and support your business, schedule a call with us!
The content in this blog post is provided for general informational purposes only and should not be considered professional tax or legal advice. The author is not a Certified Public Accountant, and no assurances can be made regarding the outcomes or consequences of tax returns, IRS actions, or any financial decisions based on this information. Readers are strongly advised to consult with a qualified tax professional or legal advisor for personalized guidance specific to their individual circumstances. The author expressly disclaims any liability for decisions made based on the information presented in this blog post.
