Bookkeeping in Las Vegas is a difficult task for many small business owners. With so many tasks to complete on a day-to-day basis, it’s easy for business owners to neglect their books or make costly errors because they are rushing. One of the more common mistakes occurs with the business’s chart of accounts. Many people completing bookkeeping in Las Vegas don’t know how to properly manage their chart of accounts — and some don’t even use one at all!
At TheOfficeSquad, we understand the challenges of bookkeeping that small business owners face, especially with their chart of accounts. It’s important to understand what a chart of accounts is, why it’s important for business owners to keep one and how those completing bookkeeping in Las Vegas can avoid making common mistakes in their charts of accounts.
Even if you’re only practicing limited bookkeeping in Las Vegas, you should be familiar with what a chart of accounts is. A formal definition for a chart of accounts is that it’s an index containing all of the financial accounts found within your company’s general ledger. Essentially, it is a resource that breaks down all of your company’s financial transactions into an easy-to-analyze report. When taking on bookkeeping in Las Vegas, a business owner would create a chart of accounts to breakdown financial transactions into sub-categories, such as cash payments, savings account deposits and undeposited funds.
Though not necessary, we believe that keeping a chart of accounts is necessary for all bookkeeping in Las Vegas. Simply put, keeping an accurate chart of accounts makes bookkeeping so much easier. The financial reporting regulations provide clear detail about your various accounts. The chart of accounts serves as a record-keeping system for the company, which means you won’t need to worry about remembering every individual account off the top of your head. It also clarifies the accounting practices your business follows which is ideal if you have multiple people performing bookkeeping in Las Vegas for your company.
Your chart of accounts is so vital to the business that errors, even small ones that seem insignificant, can damage your business in many ways. So, what are some common chart of accounts mistakes? Providing too little or too much detail in the chart of accounts is quite common, as is not consistently updating the chart of accounts each day.
Believe it or not, you can make chart of account mistakes even with an easy-to-use system like QuickBooks. Thankfully, TheOfficeSquad knows this problem all too well; that’s why CEO and Founder, Dida Clifton, has made her new book, Top 10 QuickBooks SNAFUs: How Not to Be a NUB, available to download for free! In it, she identifies a few common chart of accounts mistakes that business owners performing bookkeeping make.
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