For small business owners, maintaining consistent and accurate financial records is a must. Doing so keeps you knowledgeable about cash flow, payment deadlines, and other pressing invoice matters. When bookkeeping is messy or neglected, the outcome can hurt your bottom line. Here are several things you should never do when engaged in bookkeeping tasks.

Common Bookkeeping Mistakes to Avoid

1. Combining Business & Personal Funds

When you combine your business expenses with personal ones, you don’t get an accurate depiction of how your financials are faring. You may also miss out on valuable tax deductions, since comingling funds makes it difficult to document your business expenses.

2. Discarding Receipts

Small business owners are pulled in many directions on any given day. Unfortunately, receipts for lunches, travels, tolls, inventory, and other business-related expenses may accidentally get tossed or lost. Keep all receipts so expenses are accurately computed. These are also needed when it’s time to file tax returns, so you can qualify for money-saving deductions. 

3. Not Understanding Accounting Software

If you’re not familiar with the software system designed to maintain bookkeeping, mistakes are bound to occur. It’s essential to know how these configurations work to keep financials in order. If the software is too complex for you to understand, consider bringing in a professional who has extensive experience with operating and managing the accounting system.

4. Rushing at Tax Time

On-the-fly bookkeeping is when a small business owner holds on to invoices and receipts until tax filing time — and then hands everything over to their accountant. Rushing documents through for sorting and accurate computing will eat up large chunks of time and leave more room for error. Instead of waiting until the last minute, stay in frequent contact with your accountant and give them receipts and invoices as you receive them.

The office of JJR & Associates LLC is the firm entrepreneurs throughout the greater Atlanta, GA, area turn to for professional and expert bookkeeping services. From hair salons to real estate agencies, you can count on the team of specialists to provide you with customized attention and nearly 24/7 availability. To learn more about how the firm can help your business, call (404) 437-7748 or visit the website today.