Bookkeeping can be a daunting task, especially if you're not familiar with the process. It's easy to make mistakes when you're just starting, but luckily there are ways to avoid them. In this blog post, we will discuss five common bookkeeping mistakes and how to avoid them. We also talked to a pro (me lol) who can give us some tips on staying organized and keeping track of our finances.
So let's get started!
The first mistake we're going to talk about is not keeping track of your receipts. This mistake is a big one, and it can easily lead to missed deductions or overspending. Make sure you keep all of your receipts in a safe place and that you enter them into your bookkeeping system as soon as possible. This step will help you stay organized and avoid any last-minute scrambling come tax time.
A second common mistake is failing to reconcile your bank statements. Reconciling simply means making sure that the transactions on your bank statement match up with the transactions in your bookkeeping system. If they don't, it could mean that you've made a mistake somewhere along the line. Reconciling regularly will help you catch any errors and keep your bookkeeping accurate.
Now the third mistake people make is not tracking their mileage. Our third mistake is essential for two reasons: first because you can deduct business-related mileage on your taxes; and second, because it can help you keep track of your spending. For example, if you know how much you're spending on gas, you can budget accordingly and make sure you're not overspending.
The fourth mistake we'll talk about is failing to categorize expenses. This one is important for both tax purposes and personal budgeting. Make sure you have a system for classifying expenses to see where your money is going quickly. This will help you stay on top of your spending and ensure you're not overspending in any area.
The fifth & last mistake we'll talk about is not staying organized. This may seem like a no-brainer, but it's essential to keep your bookkeeping system organized so that you can easily find the information you need. This means having a place for everything and keeping things in order. A little bit of organization will go a long way towards making your bookkeeping process easier.
So those are five common bookkeeping mistakes and how to avoid them! If you're just getting started with bookkeeping, or you've been making some of these mistakes, hopefully, this blog post has been helpful. And remember, if you ever need help, there's no shame in reaching out to a professional. We're here to help!
Do you have any bookkeeping tips to share? Let us know in the comments below! And as always, if you have any questions, feel free to reach out to us. We're happy to help! :)
If you need help getting started with bookkeeping, or if you want someone to take a look at your system to make sure you're doing things right, we offer affordable bookkeeping services. Contact us today for a free consultation! We'd be happy to chat with you about your needs and see how we can help. :) Thanks for reading!
Casey Edmondson
Bookkeeper & QuickBooks Pro Advisor | CLE Bookkeeping Solutions
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