Common Business Bookkeeping Mistakes Which Cost Companies Billions of Dollars
Business bookkeeping is an essential part of running a successful company. It is important to have accurate and up-to-date financial records that reflect the true financial health of the business. Small companies may make common mistakes, but oftentimes simple mistakes can be even more costly for larger companies. Unfortunately, many companies make these mistakes when it comes to bookkeeping, which can cost them billions of dollars. Here are five common business bookkeeping mistakes that cost American companies billions of dollars.
1. Not Separating Business and Personal Expenses
The first mistake is not separating personal and business expenses. It’s important to keep personal and business expenses separate to ensure that the business’s financial records are accurate. When personal expenses are mixed in with business expenses, it can lead to inaccurate financial reporting and tax issues.
2. Not having a Proper Accounting System
The second mistake is not having a proper accounting system in place. Having a proper accounting system is essential for any business, as it ensures that all financial information is tracked and reported accurately. Without a proper system, businesses can find themselves facing costly audits and fines.
3. Not Reconciling Bank Statements
The third mistake is not reconciling bank statements. Reconciling bank statements is important for businesses to ensure that transactions are accurate and that there are no discrepancies. Failing to do this can lead to errors that can cost the business money.
4. Not Tracking Expenses properly
The fourth mistake is not tracking expenses properly. Tracking expenses is important for businesses to ensure that they are not overspending and that all expenses are accounted for. Without proper tracking, businesses can find themselves in financial trouble.
5. Not Investing in Automated CheckWriting Software
The fifth mistake is not investing in automated checkwriting. Automated checkwriting is an important tool for businesses to ensure accuracy and efficiency when it comes to writing checks. Manual checkwriting can be time consuming and prone to errors, while automated checkwriting eliminates the need for manual entry and helps to ensure accuracy.
As you can see, business bookkeeping mistakes can cost companies billions of dollars. To avoid these mistakes, American businesses should keep these measures in mind:
- Proper accounting system in place
- Keep personal and business expenses separate
- Reconcile bank statements
- Track expenses properly
- Invest in automated checkwriting software
PrintBoss is the best choice for automated checkwriting for QuickBooks Online, QuickBooks Desktop and dozens of other types of accounting software. PrintBoss offers a wide range of features such as check signing, checkwriting, automated payment reminders, and check tracking.
PrintBoss is the perfect choice for an automated checkwriting software. PrintBoss integrates with QuickBooks Online, QuickBooks Desktop, Sage, Microsoft Dynamics, and more. With a PrintBoss free 30-day trial, you can see how automated checkwriting software can benefit your business and avoid costly mistakes in bookkeeping. Try the 30-day free trial here.