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Aron Govil shares 10 Common Bookkeeping Mistakes to Avoid in Your Business

Aron Govil

No one is perfect, and that includes bookkeepers. Aron Govil says even the most experienced professionals can make mistakes from time to time. However, avoiding the most common bookkeeping mistakes can help you stay on track and minimize financial headaches down the road.

Aron Govil: In this article, we’ll discuss 10 of the most common bookkeeping mistakes and how to avoid them.

1. Not reconciling your bank statements regularly

One of the most common bookkeeping mistakes is not reconciling your bank statements regularly. This means you’re not comparing your records with the actual transactions that have taken place in your account. This can lead to inaccurate accounting and can be a nightmare to try and fix later on. To avoid this mistake, make sure you reconcile your bank statements at least once a month.

2. Not recording expenses as they occur

Another common mistake is not recording expenses as they occur. This means you’re waiting until the end of the month or year to track your spending, which can make it difficult to stay on top of your budget. To avoid this mistake, track your expenses as they happen so you have a better idea of where your money is going.

3. Not tracking inventory correctly

The last common bookkeeping mistake is not tracking inventory correctly. This can lead to inaccurate financial statements and can be difficult to correct later on.Aron Govil says to avoid this mistake, track inventory regularly and make sure you’re using the correct formulas to calculate your totals.

4. Not separating personal and business finances

One of the biggest mistakes business owners make is not separating their personal and business finances. This can lead to a lot of financial confusion down the road. To avoid this mistake, set up a separate bank account and credit card for your business and only use them for business expenses.

5. Not keeping track of invoices

A common mistake among small businesses is not keeping track of invoices. This means you’re not keeping track of who you’ve billed, when you’ve billed them, or how much you’ve billed them. To avoid this mistake, create a system for tracking invoices and make sure you follow up with clients promptly.

6. Not recording payments received

Another common mistake is not recording payments received. This means you’re not keeping track of how much money you’ve actually brought in. To avoid this mistake, track all payments received and make sure to update your financial statements accordingly.

7. Not tracking inventory correctly

The last common bookkeeping mistake is not tracking inventory correctly. This can lead to inaccurate financial statements and can be difficult to correct later on. To avoid this mistake, track inventory regularly and make sure you’re using the correct formulas to calculate your totals.

8. Not classifying expenses correctly

Another common mistake is not classifying expenses correctly. This means you’re not separating business expenses from personal expenses. To avoid this mistake, set up separate accounts for your business and personal expenses and only use the business accounts for business expenses.

9. Not using accounting software

The last mistake business owners make is not using accounting software. This can lead to a lot of financial confusion and can be difficult to track down later on. To avoid this mistake, invest in some good accounting software and learn how to use it properly.

10. Not consulting a professional accountant

The final mistake business owners make is not consulting a professional accountant. This can lead to a lot of financial confusion and can be difficult to track down later on. To avoid this mistake, consult with a professional accountant who can help you get your finances in order.

These are 10 of the most common bookkeeping mistakes business owners make. By avoiding these mistakes, you’ll be able to keep your finances in check and stay on track for the future.

Avoiding these common bookkeeping mistakes, you’ll be able to keep your finances in order and avoid any major headaches down the road.

By avoiding these three common mistakes, you’ll be on your way to better bookkeeping and fewer financial headaches.

Conclusion:

These are three of the most common bookkeeping mistakes small business owners make. By avoiding these mistakes, you’ll be able to keep your finances in order and avoid any major headaches down the road. To avoid these mistakes, track your spending, inventory, and payments received regularly and consult a professional accountant when necessary. Having good bookkeeping practices is essential for any small business, so make sure to avoid these mistakes and get your finances in order!

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