At Bookkeeping Express, we know how important keeping accurate financial records is to the health of your business, that is why we have compiled five very common bookkeeping mistakes to look out for:
- Poor record-keeping – Certain expenses may seem small or insignificant in the grand scheme of things, but, trust us, missing receipts add up, and can quickly become a sizable gap in your financial tracking. To make the best decisions possible for your business, make sure you are keeping accurate, consistent financial records.
- Not categorizing expenses correctly – It is very important to make sure income and expenses are categorized correctly. In addition to helping you track profitability, miscategorized items can also impact financing documentation and tax treatment.
- Not tracking reimbursable expenses – Whether it be last-minute supplies, transportation, lodging, or one of the many other expenses you pull out your wallet for, don’t forget, these need to be included in your financial tracking, along with your receipts, if you want to get the deductions you are entitled to at tax time.
- Not keeping backup copies – We’ve all had it happen. A file accidentally deleted. A folder lost. Make sure you keep backup copies of all of your bank statements and receipts, in case of a technology fail or office issue. These records are too critical to your business to get lost in the shuffle.
- Doing it all yourself – Before you decide you can find a few more hours in your schedule this month to save a few dollars and do your bookkeeping yourself, consider your own value to your business. Rather than sacrifice time you could be spending on business strategy, management, or building the relationships only you can make, consider working with a virtual bookkeeping service, like Bookkeeping Express. This would allow you to put your energy back where it needs to be; in building your business.
To find out if virtual bookkeeping is right for you, contact us at (720) 213-8040 or schedule a time to speak with a BKE industry expert.