Here at Vohora LLP, we know you care about your business, and we want to help you do what’s best for it. No matter what kind of business you run, one important part of keeping everything running smoothly is keeping the books in good order. Unfortunately, bookkeeping mistakes are surprisingly common, and they can seriously impact your business’ success. In this article, we will go over three common bookkeeping mistakes that you should take care to avoid.
- Poor Record Keeping- One of the most common mistakes that people make when it comes to bookkeeping is not keeping thorough records of their expenses. Even small purchases can add up significantly over time, and more importantly, keeping track of every purchase will help you save time when filing your taxes and protect you in the event of a CRA audit.
- Improper Categorization- Another common mistake in bookkeeping is not sorting expenses into the appropriate categories. Organizing all your income and expenses into these categories can help you greatly in analyzing your business’ finance and profitability, which will in turn help you make smarter decisions as to how to improve your operation.
- Lack of Backups- A third serious mistake when it comes to bookkeeping is not making regular backups of your files. These records contain essential information on your business, so it’s important to make sure you don’t lose access to that data in the event of, say, a fire or computer crash. Always back up your files and store the secondary copies in a safe place.