• Posted 7th August 2015

What are the Common Bookkeeping Mistakes to Avoid?

Recording each financial detail may not seem a fun task. But trust me; doing this can save your money and time and most importantly from the stress later on. You should know that bookkeeping is a significant part of any business where simple errors can cost you money. So, what are the bookkeeping mistakes that you should avoid? Mixing personal and business finances When you keep your company and personal accounts separate, it will be easier for you to organise your company accounts. If you do mix them together, organising can be difficult making you frustrated. On top of that, you won’t be able to claim for every legitimate business expense where claims can be made. It also might be tempting for you to use your company cards for your personal purposes, you should remember to avoid at any cost. Not using a bookkeeping software For keeping your financial paperwork and documents safe, you need to use good bookkeeping software which you are comfortable with. Using software, you can be able to minimise errors, save your time and secure your records. Not reconciling bank statements Bank reconciliation is an important part of bookkeeping process which you should never neglect. This is why you should always check all the items going through your bank statements thoroughly and reconcile the books and bank statements accurately on a monthly basis. Not maintaining records of small expenses If you do not like to keep your receipts, you should make a habit of keeping and recording receipts including the small expenses. As sometimes, HMRC might visit you, having adequate records will also help you avoid penalties. So, do not let the small expenses slip through your mind. Not appointing an accountant When you are struggling with your books and accounts, a professional accountant can maintain your books and also help you with your accounts preparation and submission. If you decide to do bookkeeping on your own to save the fees, you might make some mistakes which can be even more expensive. If this blog points out mistakes that you have made in your business, you can speak to one of our professional accountants at 075 1807 5357 and get expert support on how to deal with it.