Mis-categorization and Generalization Can Throw Your Accounting Records into a Tizzy

Small business owners and entrepreneurs have a reputation for being outliers, rebels and thinkers of a different sort. Many times that means they come up with some really great ideas and innovations, but it can also mean that they stumble into problems when it comes to general accounting practices. Some big idea people are extremely detail oriented and others can’t do a thing with details – and therein lies the problem.

There are general bookkeeping guidelines for standard categorization for expenses. When you fall into a detail-orientation group, you tend to categorize expenses in your bookkeeping down to the nth degree. On the other hand, when you are big picture entrepreneur, you might tend to mis-categorize or generalize expenses too broadly.

How do you make sure your bookkeeping is in the proper condition to easily report the financial status of your small business and allow for the proper filing of taxes? Especially if you are one of the two personas described above, you hire a bookkeeper. And, even if you aren’t on the extreme ends, hiring a bookkeeper removes the questions and gives you the peace of mind you need to be able to devote your attention and efforts on building and operating your small business.

Recording expenses is just one aspect of abiding by general and standard accounting methods. But how you deal with the details can be a good indicator in how you will handle the rest of the financial aspects of your business.

Solve it all with a good bookkeeper

A bookkeeper will help you keep the records straight and prevent bookkeeping errors. You don’t want to be the small business owner who spends a lot of time fixing mistakes because that not only aggravates you, it keeps you from doing the work you want to be doing.

Knowing that is one of the reasons why The Payroll Department is offering bookkeeping services. Processing payroll is just one aspect of the financial and accounting side of your business, but it is all connected, that’s for sure. Grace Walker is certified by Intuit’s Quickbooks and is ready to get your receipts and expense details and accounts in order. It’s easy to contact Teresa Ray at The Payroll Department right now to have everything in order by the end of the year and tax time rolls around!

-Elaine of The Payroll Department Blog Team