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Bookkeeping Red Flags | Incite Tax
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Bookkeeping Red Flag FREE Checklist
What are some bookkeeping red flags to watch out for?
The first bookkeeping red flag is you want to run a profit and loss statement by month. When you're looking at the statement, it'll show January, February, March, April, however many months you're looking at in separate columns. You wanna notice trends, mainly inconsistent trends. If you see this you're likely not categorizing your expenses consistently the same way.
As an example, let's say I purchase supplies on Amazon.com, so it's office supplies. Well, let's then say I buy computer equipment on Amazon. What happens if I book that to office supplies, when it really should be equipment? What my books will show is maybe one month where office supplies are a lot higher.
Maybe there's a month where office supplies don't exist at all. Inconsistent trends is a flag to look out for because it means you can't make informed business decisions based on the numbers, because they're just not in the right spot.
Listen as John Briggs, Tax Genius, shares Red Flag 2-4!
And remember...the #IRSSUCKS
John Briggs | Tax Genius
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