What are Common Bookkeeping Mistakes?
Whether you are a freelancer or business owner, you must know about the importance of bookkeeping. It is all about the correct and accurate business financial records. Although you can rely on outsourced bookkeeping services, knowing about common bookkeeping mistakes can help you in many ways. Let’s learn about it - Not Keeping Receipts A common error that people often make is not keeping the receipts. Receipts are necessary for verification of the expenses and can be very important during audit. Without them, firms can have a problem in proving genuine expenses. Mixing Personal and Business Finances Another common mistake is the combining business and personal accounts. This practice distorts the records, and makes it tough to generate accurate financial reports. Separating the business cash flows from the personal ones makes record-keeping easier. Incorrectly Categorizing Expenses Misclassification of the expenses is one of the frequent mistakes that affect the reliabilit...