CommonBookkeeping Mistakes

Common Bookkeeping Mistakes and How to Avoid Them

When it comes to running a successful small business, proper bookkeeping and accounting is an important way to keep track of finances, maintain a solid budget, and stay organized for filing taxes each year. Despite its importance, an overwhelming 60% of small businesses don’t feel confident in their knowledge of accounting, which is why bookkeeping services in Mesa are here to help!

As your experts in small business bookkeeping in Mesa, we’ve compiled this list of common errors and how to avoid them.

Five Common Bookkeeping Mistakes -- And How to Avoid Them

Staying on top of bookkeeping can feel overwhelming for small businesses to manage alone. Here are five rookie bookkeeping mistakes to be mindful of, no matter the business’s size or industry:

#1: Failing To Keep Business Expense Receipts

It’s easy to throw away receipts from time to time, especially when they are for smaller business expenses. While this might not seem like a big deal, it is crucial to save them for when tax season comes around. This is because saving receipts ensures that any business write-offs have the proper documentation needed to avoid any trouble with the law. So make sure to keep every receipt, no matter the cost! Even those smaller expenses will make a difference in the long run.

#2: Not Keeping Data Backed Up

The last thing a business needs is losing important business records. In the current digitized age of businesses, it can be tempting to rely solely on online software to handle all of the recordkeeping duties. While this is usually safe enough, keeping both paper copies and digital backups with reputable software is a good rule-of-thumb.

#3: Keeping Business and Personal Accounts Together
In the early stages of opening a business, all too many people make the mistake of mixing personal and professional expenses in one account. This will undoubtedly make bookkeeping more complicated than it has to be. A joint account is a serious headache, as it takes much more time to track spending and makes it easy for expenses to slip through the cracks. Save time and stress by using separate accounts and credit cards from the start!
#4: Inaccurately Reporting Sales Taxes

Understanding how to properly collect and report sales taxes in a timely fashion is one of the most important bookkeeping duties for preventing hefty fines and penalties. Sales taxes are different depending on the state, so it is crucial for businesses to stay up-to-date on the laws and regulations of their area!

#5: Going At It Alone

It might be cheaper to bookkeep without outside help at first. But without the proper time or training to stay on top of organization and documentation, costly mistakes are bound to occur.  There is already so much that comes with running a small business, so why not save on time and stress through hiring a bookkeeping service?

Bookkeeping Services Mesa’s businesses Can Trust

All of these simple mistakes can be easily avoided with the help of a reputable bookkeeping service. With years of experience in the accounting world, M&M Accounting LLC offers the best small business bookkeeping Mesa has to offer! 

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