Bookkeeping for many is a kind of necessary evil but taking the evil lightly can cost you and your business a lot. Hereby one must take time to read this post to identify the mistakes that commonly happens during the bookkeeping process.
While doing the bookkeeping process, one must make sure that all the transactions should be recorded in a proper manner. One can use the software such as Quickbooks bookkeeping services. The current post is focused on some of the common bookkeeping errors which one must look out for.
Don’t mix Personal and Business Expenses
Suppose you are traveling and spend a certain amount of money. At the end of the year, you found that you are not being able to match the balance sheet as probably you forgot that you spend the money on a leisure trip and not on a business trip. But you mistakenly added it up in the business expense.
This is a small error but errors like this can cost you a lot in the long run. Therefore, when you are doing the bookkeeping, try to keep a vigilant eye on your expenses and entry the record in a proper way to avoid any foul of IRS.
Keep the Receipts intact
You have probably bought groceries for the office purpose and throw the receipt in the bin. After a few months when you will probably forget this incident a day will find that you are not being able to balance the accounts.
Thus, you can see that keeping small documents are also important. A small displacement of the receipts can create a huge issue for you. If you have a habit of ditching the receipts then you must keep them in place.
Not having different Bank Accounts
It is important that one must have separate bank accounts for both personal and professional matters. It helps you to keep the spending separate. Thus, when at the end of the year you will sit to calculate all the expenditure you do not have to look to different accounts and tally them one by one.
Additionally, it minimizes the margin of errors. Using QuickBooks bookkeeping services software can be helpful also.
Neglection of the sales tax
Often the small business owners used to avoid the matter of sales tax. Not addition the sales tax is one of the common bookkeeping issues. If you do not collect or report the sales tax properly you can be penalized or can be fined for the same.
However, a wrong entry can also increase the sales tax negatively.
No schedule Work
The bookkeeping task is a never-ending task. Expenses and transaction will run continuously. You may need to work weekly, monthly. Therefore, a bookkeeper must keep a vigilant eye on the transaction all the time and must record them. You can take the help of QuickBooks bookkeeping services.
Final Words
Therefore, you can see the most common mistakes that can happen during the bookkeeping. However, in case you are not being able to do bookkeeping by own, please feel free to contact us.