Common bookkeeping mistakes can easily drive business owners crazy! Similar to common tax mistakes for small businesses, bookkeeping mistakes can be expensive and have long-running implications. Instead of falling victim and dealing with the ramifications, the experienced accounting experts at John F. Dennehy CPA have you covered! We are a team of professional accounting specialists offering services designed to help you and your business grow:
We’ve put together some of the more common bookkeeping mistakes to make sure your business doesn’t fall into the same trap. If you do or don’t have an accountant, these are some pointers that will save you money and a potential headache in the future. If you need some additional expert advice, don’t hesitate to give us a call to schedule a free consultation.
Procrastination Is One of the Most Common Bookkeeping Mistakes
Hardly anyone actually enjoys bookkeeping (excluding us of course). So what do many businesses do? They put it off further and further into “some other time”. The result? A lot of things can and will go wrong, such as:
As annoying as it may be, businesses should do everything possible to stay up to date on bookkeeping. Don’t let even a month go by without doing it, stay on top of it.
Petty Cash Mismanagement Can Be a Big Deal
Many businesses operate with petty cash and at times don’t keep track of its use because it is considered “extra”. Don’t make this mistake. Petty cash is just as important as all other financial transactions. Be sure to have it somewhere secure (like a lock box) and keep receipts of the transactions you use the petty cash on. Every dollar counts when it comes to your business.
Business & Personal Spending Do Not Mix
So one day you’re out to lunch with a client, and you realize you left your business card at the office: what do you do? The simple solution is to pay using your own credit card, right? Not so fast!
Did you know that doing something so trivial like using your own card can remove a layer of legal protection if your business is audited or sued? Do yourself and your business a favor and never mix personal transactions with business transactions (and vice versa). Besides, it can make things that much more confusing once you start bookkeeping.
Never Throw Receipts Away
This should be a no brainer, but sometimes, the mind slips. Never make the mistake of throwing away receipts for any transaction done in your business. Did you buy a new coffee maker for the office? Keep the receipt. Did you have to go to the store to buy extra supplies? Keep the receipt. Yes, having so many receipts can be a nightmare, but it pays dividends in the long run.
Always Read Your Financial Statements
If your financial statements seem like another language, then it may be time for you to become bilingual in finances. Financial statements are an open window into your business, it can help you generate revenue or avoid a financial meltdown. Why it is important to read your financial statement?
Don’t Hire an Inexperienced Bookkeeper!
Look, I’m sure Joe Schmoe is a really nice guy and all, but that doesn’t mean he or she is the right choice to manage the financial records of your business. Hire someone who has some experience under their belt, they are going to know useful tips and tricks to managing records the right way. One mistake can lead to huge problems, so be picky with your choice.
Hire a CPA to Help with Efficient Growth
If you truly want your business to grow, hire a CPA! Obviously, we are CPAs, so we are bound to mention our services. But we are not joking when we say hiring a CPA will help your business grow. Here’s how:
Contact John F. Dennehy CPA Today
When it comes to avoiding common bookkeeping mistakes, you’ve got an experienced ally in your corner with. Just as you rely on your physician to diagnose healthcare matters, you can rely on John F. Dennehy CPA for decades of experience helping business like yours avoid common bookkeeping mistakes. We are a dedicated team of tax and accounting experts who will work to create a competitive advantage for your business.
Contact John F. Dennehy CPA today for a free consultation.