Accurate bookkeeping is the backbone of any successful business, but even minor errors can lead to financial chaos. Whether you’re a startup or an established company, watch out for these common pitfalls:
- Mixing Personal and Business Finances
Using a single bank account for both personal and business expenses creates confusion, complicates tax prep, and risks compliance issues.
Fix it: Open a dedicated business account immediately.
- Neglecting to Reconcile Accounts
Failing to match bank statements with bookkeeping records can hide errors like duplicate charges or missed payments.
Fix it: Reconcile accounts monthly.
- Poor Expense Categorization
Labeling transactions vaguely (e.g., “miscellaneous”) makes it impossible to track spending trends.
Fix it: Use specific categories like “Office Supplies” or “Marketing.”
- Ignoring Receipts and Documentation
Lost receipts mean lost deductions and audit risks.
Fix it: Digitize receipts using apps like Dext or Hubdoc.
- Falling Behind on Data Entry
Letting bookkeeping pile up leads to rushed errors.
Fix it: Schedule weekly time for updates or automate with accounting software.
Pro Tip: Partner with a professional bookkeeper to streamline processes and catch issues early. Need help? Schedule a free consultation with Missouri Bookkeeping today.
