Common Bookkeeping Mistakes
Claiming charitable tax deductions.
For a personal return you can write off donations given to charitable organizations.
For a business you cannot.
But you can write off advertising!
Be sure to have your business recognized when you make donations to charitable organizations so you can name them as advertising.
Backing up your files.
Don’t rely solely on cloud hosting to store your data.
Keeping a second back up is always a good decision.
Whether on your hard drive or a portable copy.
Tracking receipts
Lost receipts can add up.
Save receipts or write the payment down for all business purchases.
You can keep your receipts in a wallet, purse or shoe box until you turn them into your accountant.
Mixing Business with Personal purchases
You cannot accurately track the value of your company if purchases are mixed.
Crucial for IRS audits.
Designate a spot for your business receipts, keeping your personal ones separate.
Waiting until the last minute.
Do not put off your bookkeeping until it HAS to be done.
If you routinely do your data entry after lunch every day (pick a time that suits you) you will stay caught up.
Up to date books will reduce your stress.
Avoiding Reconciliations
Check your account status often.
Two, Three or more times a week.
Reconcile throughout the month and at the end it will take just a few minutes.
Not Filing Sales Tax report timely
Be sure you know your filing frequency and due date for payments.
Sales tax reports not filed on time carry a large non-filing penalty.
Even if you don’t have the payment you should file the report on time.