Common financial mistakes business owners make (part 2)
from bookkeeping, to protection, to wealth creation.
Mistake #2: poor information gathering. receipts, receipts, receipts!
Why are receipts so important? Because bookkeeping is nothing else then putting your business transaction into a picture. The better you provide the puzzle pieces, the clearer and accurate your business picture will be.
What makes your business picture?
Your bank and credit card statements, your receipts, your invoices, bills of sale, your purchases, inventory, donations, etc.
EVERY TRANSACTION YOU DO IN YOUR BUSINESS SHOULD BE ACCOUNTED FOR.
This is true for ANY type of business: sole proprietor, partnership, corporations, and any form in between. I have notice in my 15 years of my accounting practice, that the lack of having receipts, hence the lack of being able to provide an as accurate picture in numbers of your business, is one of the main reasons of why businesses fail.
Compare it to a recipe of a food you have never made before. To know how it tastes, you need all the ingredients. The bookkeeper’s job is to put those ingredients in the right order, so the food will taste good. Same for your business: we need all the information so your bookkeeper can create your…
