07.20.06
Common SB Bookkeeping Errors
Nobody likes paperwork, and bookkeeping ranks right up there as one of those necessary evils of operating a business. While it can be a royal pain in the derriere, it must be done and done as accurately as possible. Not only will the IRS appreciate your fine bookkeeping skills, but you may too when you are able to easily claim business-related deductions. Three common bookkeeping errors you should avoid are:
Not keeping track of all receipts…no matter how small
The IRS may not require that postage receipt for $4.20, but when you want to deduct it on our taxes, you will. Not only do these little receipts add up, but they also provide you with the required documentation you may need later.
Forgetting reimbursable expenses
Have you ever paid cash or used your personal credit card to pay for a business-related item? Chances are pretty good you have, and that you also forgot to turn it in to your company for reimbursement.
Failure to deduct sales tax
Retail businesses often fail to deduct the sales tax from the total sales. This results in a higher total sales amount and does not lower the amount of taxes due.
These are just a few of many common errors that business owners make. If you aren’t comfortable doing the required bookkeeping, then investing in an experienced bookkeeper may be of great benefit to you.
