Three Bookkeeping Mistakes Made by a Small Business Owner
|October 10, 2012||Posted by Steve Webster under Random|
I found a story with some very good information from a small business owner who does the bookkeeping for her family owned business. She admits to making three bookkeeping mistakes that she will never make again.
Her three mistakes were:
1. Lumping everything into the single categories. Not only did this cost her money by having the accountant break the transactions out for her later, she also couldn’t create meaningful financial statements during the year because expenses were not coded to the correct accounts.
2. Not tracking deductible expenses. The family paid for business expenses with their personal money and didn’t turn in expense reports. This would have made their business results look better than they actually were.
3. Not having paper backups. I wish we could eliminate more paper the bookkeeping process but it is a necessary evil. Unless you are going to take the time to scan everything into your accounting system, you need to keep the paper document on file.
As an accountant, these mistakes make me cringe but she realizes they are mistakes and won’t make them again. Her family owned business will be better because of it. http://finance.yahoo.com/news/first-person-3-business-bookkeeping-mistakes-ill-never-195900385–finance.html