As a business owner, it can be hard to juggle all the tasks that are necessary to reach your goals and success. One of the biggest mistakes that business owners can make is to let bookkeeping slide. When you have mistakes in your bookkeeping, it can prove disastrous at tax season. In fact, it can make it so that your filing is delayed depending on the severity of the mistakes. Propel Your Accounting is here to point out some mistakes that should be avoided to ensure you can file your taxes in a timely manner.
Avoid These Bookkeeping Mistakes that Can Negatively Impact Tax Filing
The last thing that you want to run into at the end of the year as a business owner is bookkeeping errors that can leave your scrambling at the end of year to get ready for tax season. Here are some of the mistakes that you should avoid:
– Mixing Personal & Business Accounts: You need to have your personal and your business accounts separated. It might seem easy to have them somewhat intertwined, but it can prove to make filing your taxes a mess. Keep your personal accounts separate from business so that tax season is simplified.
– Fail to Document Receipts: It is important that you have all the receipts of doing business so that you can claim the deductions at tax season. This can have a dramatic impact on your taxes and how much taxable income you have. It may be worth using software that helps you track your receipts by immediately downloading them into the cloud so they are properly filed.
– Failure to Reconcile Bank Accounts: Reconciling your bank accounts is something that needs to happen regularly. That way, if there are any discrepancies, they can be addressed and fixed. When you save it for the end of the year, it can be a lot of work to sift through all the information.
– Ignoring Accounts Receivable & Payable: You have to keep track of your invoices and unpaid bills. Whether they are invoices invoices that you have sent or payments that you have received, make sure they are recorded properly.
– Waiting Until Year End: There is far too much bookkeeping work that needs to be done as a business owner to save it for the end of the year. You need to be giving bookkeeping the attention that it deserves throughout the year to avoid issues when tax season rolls around.
Bookkeeping, Accounting, Business Consulting & HR / Admin Services in the United States of America
If you are struggling to stay on top of all the bookkeeping tasks of owning a business, you can turn to Propel Your Accounting to provide you with the bookkeeping and accounting services that are necessary to reach success. We will work to make sure your records are completely accurate so that there aren’t any wrinkles when it is time to file taxes for your business. Call us today!
