Did you know that more than 40% of small businesses make mistakes on their payroll every year?
AND – that the average fine for those mistakes is a whopping $850??
That’s just one example of how bookkeeping mistakes can hurt your bottom line.
And don’t get us started on all the other ways, too, like:
Fines for late tax filing and missed deadlines
Unclaimed tax-deductible expenses
And lots more!
The good news? All are TOTALLY avoidable with some basic bookkeeping ️
So, here are 3 things we hear from our clients that indicate common bookkeeping mistakes – and one small 5-minute solution for each that you can do today:
(𝟭) “𝗜 𝗱𝗼𝗻’𝘁 𝗵𝗮𝘃𝗲 𝗮 𝘀𝗲𝗽𝗮𝗿𝗮𝘁𝗲 𝗯𝗮𝗻𝗸 𝗮𝗰𝗰𝗼𝘂𝗻𝘁 𝗳𝗼𝗿 𝗺𝘆 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀”
This is business finance 101 – a business-only bank account is what allows you to run clear financial reports, and it also protects your personal assets in case of an audit.
ONE SMALL THING YOU CAN DO TODAY: If you aren’t ready to open a business account right now, then simply open a separate checking account with your current bank for just your business transactions. It’s a start!
(𝟮) “𝗜 𝗰𝗮𝗻’𝘁 𝗿𝗲𝗺𝗲𝗺𝗯𝗲𝗿 𝘁𝗵𝗲 𝗹𝗮𝘀𝘁 𝘁𝗶𝗺𝗲 𝗜 𝗿𝗲𝗰𝗼𝗻𝗰𝗶𝗹𝗲𝗱 𝗺𝘆 𝗯𝗮𝗻𝗸 𝗮𝗰𝗰𝗼𝘂𝗻𝘁𝘀 𝗮𝗴𝗮𝗶𝗻𝘀𝘁 𝗺𝘆 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗿𝗲𝗰𝗼𝗿𝗱𝘀”
Ideally, you should be doing this once a week, and at a minimum once a month. Otherwise, you’ll forget transactions, forget to invoice clients (and pay vendors) categorize expenses incorrectly, and make worse (AKA less profitable) business decisions from outdated data -!
ONE SMALL THING YOU CAN DO TODAY: Check to see if your bank feed is automatically adding transactions to your financial software – if not, make sure to add it! It should only take you 5 minutes
(𝟯) “𝗜 𝗱𝗿𝗶𝘃𝗲 𝗮 𝗹𝗼𝘁 𝗳𝗼𝗿 𝘄𝗼𝗿𝗸, 𝗯𝘂𝘁 𝗜 𝗮𝗹𝘄𝗮𝘆𝘀 𝗳𝗼𝗿𝗴𝗲𝘁 𝘁𝗼 𝗸𝗲𝗲𝗽 𝘁𝗿𝗮𝗰𝗸 𝗼𝗳 𝗺𝘆 𝗺𝗶𝗹𝗲𝗮𝗴𝗲”
These are tax-deductible expenses – and if you forget them, you’re leaving money on the table!
ONE SMALL THING YOU CAN DO TODAY: Download the free version of a mileage tracking app like MileIQ. Available GPS tech makes the process nearly effortless!
By the way, we also added a helpful blog that lists more common mistakes and how to fix them!
What about you? Do any of these 3 things sound like something you would say?
Or would you rather stick a fork in your eye, rather than read a blog about bookkeeping mistakes?
If that’s you – no worries! We will make sure your business bookkeeping is error-free – without the stress!
Just reach out ️ www.choosebacus.com • firstname.lastname@example.org • (352) 432-8104
Kerry Postel – Founder CEO Principal
Abacus Business Solutions
Has Higher National Diploma in Business and Finance, Certified in QuickBooks, Member of American Institute of Bookkeepers, and over 20 years of bookkeeping experience including construction, travel, restaurants, events management, and other various professional services.
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