Bookkeeping Tips

For my first blog post, I'd like to start off with some simple but very important tips.

1.) Mixing Business and Personal Finances

It's easy to blur the lines between personal and business spending. For example, if you need to buy something for your business but the money is in your personal account, it's so easy just to order something online with your personal account. Unfortunately, you've just mixed your personal and business accounts. You need to make sure you put money into your business account and then make purchases from that specific business account. When your expenses aren't clearly separated, it complicates your records, tax filings, and even legal liability.

Tip: Set up separate bank accounts and credit cards for your business and avoid the temptation to mix purchases.

2.) Falling Behind on Recordkeeping

You're busy, I get it but letting your bookkeeping slide-even for a month-can create a snowball effect of errors, missed payments, and unbalanced accounts. You never know when an opportunity could knock and you need to have up-to-date financial reporting to present to a lender in order to take advantage of the situation, but you're behind on your bookkeeping so now the lender has to wait for you to catch-up. It's always better to be prepared and staying caught up is the way to go.

Tip: Make bookkeeping a consistent habit. Whether it's weekly or monthly, schedule regular check-ins with your financials-or better yet, partner with someone who can keep things current for you.

3.) Misclassifying Expenses

Not all expenses are created equal. If you're lumping everything into generic categories, you could be missing out on valuable deductions-or triggering red flags for auditors.

Tip: Review your chart of accounts and make sure each expense is properly classified. It can make a big difference come tax season.

4.) Ignoring Accounts Receivable

Revenue looks great on paper-but only if the money actually comes in. Businesses that don't stay on top of unpaid invoices may struggle with cash flow, even when sales are strong.

Tip: Set clear payment terms, send timely reminders, and consider using automated tools to track and manage receivables.

5.) Not Reconciling Bank Statements

Reconciling your accounts may not be glamorous, but it's essential. Without it, you could miss fraud, double payments, or accounting errors that throw off your entire financial picture.

Tip: Reconcile all accounts-bank, credit card, and loan-at least once a month to catch issues early.

Let's Keep Your Books in Great Shape

Avoiding these mistakes can save your business time, money, and a lot of headaches. If you're ready to take the stress out of bookkeeping or just have some questions, let's talk. Contact me and let's make sure your financial foundation is as strong as the rest of your business.

I hope these tips help you with your business.

Sincerely,

Talissa Lietzke