Did you know?

Here are two common mistakes bookkeepers see many business owners making: 

  1.  Mixing business and personal finances.

This is commonly referred to as “comingling”.  The most obvious problem with mixing business finances with personal finances is unorganized data, which makes it difficult to quickly see how your business is doing financially.  Messy books also take longer to sort out during tax season, which ends up costing you time to locate and organize records as well as could potentially cost you more money to have your taxes prepared.  Additionally, you could potentially miss out on tax deductions that your business may be entitled to.  It can also cause legal problems if your company were to be sued or if you wanted to sell your company later on.   It also increases your risk if your business gets audited by the IRS.   It is best practice to open business accounts and only use those accounts for business transactions.  Your tax preparer will thank you!

 2.  Not keeping good financial records.

There are many reasons why it is essential to keep good financial records for your business.  You will be able to monitor the financial health of your business with accurate financial reports.  You can keep track of deductible expenses to decrease your tax liability.  When tax time rolls around, gathering information to prepare your tax return or send everything to your tax preparer will be a breeze!  No more giving up evenings and weekends in January trying to locate and organize all of your financial information! 

If this describes you, schedule a free consultation to see how I can help you rock your books and wow your tax preparer!