What's the deal with bookkeeping?

Hey Creadora,

If the mention of expenses, taxes, or anything finance-related gives you the chills, you are not alone.

Last week, we sat down with Kerri from TreKer Bookkeeping LLC, who was kind enough to share some of the most common mistakes she sees small business owners make in their finances.

These practical tips can help you avoid common pitfalls and keep your business’s finances in top shape!

Here’s Kerri’s advice…

1. Separate Personal and Business Finances

Mixing personal and business expenses is a major mistake. Keep separate bank accounts and credit cards for your business to simplify tracking and avoid headaches during tax season.

2. Don’t Ignore Cash Flow Management

New owners sometimes focus only on revenue and ignore cash flow. Poor cash flow management can lead to shortages, even in a profitable business. Regularly review your cash flow and plan for upcoming expenses to maintain financial health.

3. Stop Neglecting Regular Bookkeeping

Waiting until tax season to organize finances can lead to stress and errors. Set aside time weekly or monthly to update your books. Staying consistent will keep your financial data accurate and up-to-date.

4. Keep the Receipts!

Small expenses add up! Without proper records, you could miss out on valuable deductions. Use digital tools to scan and store receipts, making it easier to track expenses and support claims during audits.

5. Misclassifying Expenses

Incorrectly categorizing expenses leads to inaccurate financial statements and missed tax deductions. Use standardized categories or consult a bookkeeper to ensure accuracy.

6. Reconcile Accounts Regularly

Reconciling your bank accounts can help catch errors or fraudulent charges. Reconcile monthly to keep your books clean and accurate.

7. Pay Attention to Tax Deadlines and Regulations

Missing tax deadlines can lead to penalties and disrupt cash flow. Set reminders for key dates and understand your business’s tax obligations to stay compliant. Hiring a professional can help with tax preparation.

Listen, we get it… finances can feel scary and it’s tempting to bury your head in the sand but Kerri says, “Taking proactive steps in bookkeeping now will save you time, stress, and money in the long run.”

Listen to Kerri!

And, if you feel you need support, shoot Kerri a message or visit her website for more information.

A big thank you to Kerri for sharing her expertise with us! If you're an expert in your field and would like to be featured in our newsletter, we’d love to hear from you. Simply fill out [this form] to get in touch with us.

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