Financial responsibility is key to successful small business ownership. However, bookkeeping isn’t as easy as you may think. Here are three of the most common bookkeeping mistakes that small business owners make.
- Mixing personal and business accounts. You may be tempted to use personal funds for business expenses, but doing so can make tax season much more complicated. It’s important to keep all business and personal accounts separate to avoid any confusion. Separate bank accounts and credit cards for your business and personal life can help you avoid accidents.
- Not doing bookkeeping regularly. Don’t underestimate the amount of time it takes to take care of your bookkeeping responsibilities. The longer you go between taking care of these responsibilities, the more likely you are to forget what certain expenses were for. Plus, you won’t want to make any financial decisions based on old information that has since changed with new expenses.
- Discarding receipts. Proper bookkeeping requires keeping meticulous records. Throwing away receipts can result in inaccurate record keeping that won’t provide you with the full financial picture of your business and its needs. Receipts should be kept for seven years just in case you have to go back and reference past expenses for any reason.
Bookkeeping is no small task, even for small businesses. That’s why it’s important to get help from qualified professionals who can handle this important responsibility for you. At Carolina Forest CPA, we offer bookkeeping services to help you make sure your records are in order. Reach out to us today for all of your business’s bookkeeping needs.