17d • General discussion
🚨 Top 5 Bookkeeping Mistakes We See Every Month (and How to Fix Them)
Messy books don’t just make your CPA cringe—they can lead to bad business decisions, missed tax deductions, and even audit headaches.
At Smith CPAs & Associates, we review hundreds of client books every year, and these 5 mistakes show up every single month:
❌ 1. Mixing Personal & Business Expenses
One word: chaos.
Using the same card for both makes your records a nightmare.
âś… Fix it: Open a dedicated business account and keep every transaction separate.
❌ 2. Misclassifying Transactions
Loan showing up as income? Contractor pay under payroll? Mislabels = wrong numbers.
âś… Fix it: Set up a clear Chart of Accounts and review it often.
❌ 3. Skipping Account Reconciliation
If you’re not reconciling monthly, your books could be lying to you.
âś… Fix it: Reconcile bank, credit card, and loan accounts every month (software or pro help recommended).
❌ 4. Ignoring Owner Draws & Contributions
Too many business owners forget to track money they put in—or take out.
âś… Fix it: Use equity accounts to properly record these movements.
❌ 5. Forgetting AR & AP
Unpaid invoices and missed vendor payments = bad cash flow + bad credibility.
âś… Fix it: Use invoicing/A/P tools and follow up weekly.
đź’ˇ Bottom line: Clean books = smart decisions + lower taxes.
👉 Want help before year-end?
đź“…Book your Free 30-minute Discovery Call Now!
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🚨 Top 5 Bookkeeping Mistakes We See Every Month (and How to Fix Them)
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