5 Bookkeeping Mistakes That Can Cost Your Business A Lot

5 Bookkeeping Mistakes That Can Cost Your Business A Lot

Don’t mix Personal and Business Expenses Assume you are travelling and spend some amount of money. At the year end, you might find you are not being able to match the balance sheet since you forgot the money spend on the trip. In fact, you added the leisure trip spend to business trip. This is a small error , but it can cost you a lot. So, when you are bookkeeping, try to keep a proper eye on the expenses and entry the record properly to avoid the IRS interference. You need to be really careful when putting down your expense.

Keep the Receipts intact You might have got groceries for the office and then threw the receipt by mistake. After some months when you would probably forget the incident, would come a day when you would not be able to balance the accounts. So, you know that keeping documents are essential. Just a small displacement of the receipts might create big issue for you. It is better to take care of it, especially if you have a habit of ditching it.

Not having different Bank Accounts One of the other important things is to have a separate bank account for professional and personal transactions. This actually helps you to keep the spending separate. So, at the year end when you sit down to calculate the expenditure, you can find out how much you have spent on personal and business transactions. Also, you don’t have to look at the bank accounts to tally the expenditure.

Neglection of the sales tax Often the small business owners avoid the matter of sales tax and don’t give importance to it at all. Now, not adding the sales tax is one of the common bookkeeping issues. If you don’t collect or report the sales tax properly and carefully you can also be penalized or be fined for the same. That’s not all, wrong entry can also increase the sales tax negativity. So, you must carefully make the sales tax entry. Of course you can take help from experts for this.

No schedule Work Bookkeeping task is something that is actually never ending. Transactions and expenses would run continuously. You might also need to work monthly and weekly. Due to this, bookkeepers must keep a vigilant eye on the transactions all the time and must also keep a proper record of it. You can even take help from QuickBooks bookkeeping services.

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