Educational Video

Hi everyone! My name is Jose, and I’m the CFO here at Bette Hochberger CPA Firm. I am excited to share some valuable tips with you today. Whether you’re a small business owner or just getting started with bookkeeping, avoiding common mistakes can save you time and money. So let’s go ahead and discuss some of the most frequent bookkeeping errors and how to steer clear of them!

Mistake #1: Not Keeping Receipts

One of the biggest mistakes I see is not keeping receipts. Without proper documentation, you can’t substantiate your expenses come tax time. Make it a habit to store all your receipts, either physically or digitally. Consider using apps to scan and organize them for easy access!

Mistake #2: Mixing Personal and Business Finances

Another common mistake is mixing personal and business finances. It’s crucial to maintain separate bank accounts and credit cards for your business. This practice not only simplifies bookkeeping but also protects your personal assets.

Mistake #3: Ignoring Regular Reconciliation

Next up is ignoring regular bank reconciliations. Failing to reconcile your accounts can lead to discrepancies and financial mismanagement. Set aside time each month to match your bank statements with your books to catch any errors early.

Mistake #4: Procrastinating on Data Entry

Procrastination can be detrimental in bookkeeping. Delaying data entry can lead to a backlog, making it overwhelming to catch up. Try to stay on top of your records by entering transactions regularly, ideally on a weekly basis.

Mistake #5: Not Utilizing Accounting Software

Lastly, many people underestimate the benefits of using accounting software. Relying solely on spreadsheets can be risky and time-consuming. Investing in reliable bookkeeping software can streamline your processes and reduce errors.

Avoiding these common bookkeeping mistakes can make a world of difference for your business. Remember to keep your receipts, separate your finances, reconcile regularly, stay on top of data entry, and leverage accounting software for a smoother bookkeeping experience.

I hope you learned something new today, and I’ll see you all again soon!