Common Bookkeeping Mistakes

Even with the best intentions, some businesses still struggle with bookkeeping. Here are a few common mistakes to watch out for:

• Not Reconciling Accounts Regularly: Failing to reconcile bank and credit card statements with your books can lead to discrepancies and missed errors.

  • As your bookkeeper, I would categorize your transactions weekly and reconcile your accounts monthly.

• Mixing Personal and Business Finances: Keeping personal and business accounts separate is essential for clarity, tax reporting, and financial management.

  • As we work together, having personal finances separate from business transactions makes it much easier to categorize transactions. Sometimes it is hard to tell when a transaction is personal or a business transaction.

• Neglecting Tax Deadlines: Missing tax deadlines can result in penalties and interest. Ensure that your books are up-to-date to avoid these issues.

  • While I do not file taxes for businesses, by using bookkeeping services your taxes will be ready or your tax accountant.

Not Using Accounting Software: Manual bookkeeping can be inefficient and prone to errors. Invest in quality accounting software to streamline the process.

• I work exclusively with Quickbooks online. Working with Quickbooks saves us both time with creating financial statements.