Business Owners Need To Stop Making These Bookkeeping Mistakes

Proledge

October 12, 2020

QuickBooks Tips

When you start a new business, it’s normal to want to have a hands-on approach to everything, so that you actually get a hang of your day-to-day operations. However, when it comes to bookkeeping, things can slip out of your hands pretty quickly if you are not careful. Not only can bookkeeping mistakes cause a significant blow to your bottom line, but in the long run, it can also lead to legal and tax troubles.

But don’t worry, the best bookkeepers in Austin, Texas, ProLedge is here to guide! In this blog, we will list some of the common bookkeeping mistakes so that you can steer clear of them while going through you

1. Not Having a Backup and Taking it Lightly

New business owners usually slack up when it comes to updating their ledgers regularly and ensuring that they have their data backed up. Missing receipts and haphazard categorization might not seem like a big issue in the beginning, but with time, it can pile up and cause serious financial tracking issues.

In addition to this, having your ledgers destroyed by a fire or your records being rendered illegible due to water damage would be the last thing you’d want! Instead of going the pen and paper way, embrace accounting software and keep backup copies to shield yourself against tech issues. Or better, find the best bookkeepers in Austin, TX to take care of your finances for you!

2. Blending Your Personal and Business Income and Expense

Combining your personal and professional expenses might seem convenient. But keeping a track of where all your business funds are coming from and going becomes all the more difficult when you mix up your personal expenses with your business income. Come tax season, and you will be scrambling to sort it out. So avoid this at all costs!

3. Not Storing Receipts Responsibility

Not having receipts handy might make it difficult to prove your claims for deductions from the IRS. Keeping a track of your receipts will help you to have a clear idea of your business spending, which makes it an extremely good practice as this will help to minimize waste and improve your operations. But this does not mean that you have a roomful of receipts! Simply store digital copies and you will be safe.

4. Not Preparing for Tax Season in Advance

Procrastinating and not getting your books in order before tax season can be really harmful to you as well as your business. Not only will you be clambering to set everything in order (which is no doubt very stressful), but you might also have to ignore your professional responsibilities to avoid having to pay late fees.

If you do resolve to do them yourself, there is always the chance of mistakes, which can lead to penalties. Many business owners also hire bookkeeping professionals at the last minute to get the job done. They charge a hefty sum for this, given the amount of data that they will have to go through in such a short span of time. This money could instead towards your business goals.

Why get into so much trouble when you can simply hire the best bookkeepers in Austin, Texas to do the job for you? Get in touch with us today and we will help you out!

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