Bookkeeping is like laundry! Don’t let your finances get wrinkled

Bookkeeping, much like laundry, seems simple until you actually have to do it. 

One minute, everything's fine and the next you’re knee-deep in mismatched socks … uh, I mean receipts. 

But just like sorting your whites from your colours, bookkeeping has its own set of common pitfalls. 

Here are a few common slip-ups that can leave you with a messy pile of finances and how to avoid them.

Laundry piles up: neglecting regular reconciliations

Skipping out on reconciling your accounts regularly is like letting laundry pile up in the corner of your room. 

Before you know it, you're buried under a mountain of transactions.

If you don’t stay on top of your financial "laundry" things can get out of hand quickly.

How to avoid this: Make sure to reconcile your bank and credit card statements at the end of each month, like you’d wash your clothes before you run out of socks. It only takes a little time each month, but if you wait until the end of the year, you'll be trying to tackle the financial equivalent of three months' worth of laundry on laundry day. Trust me, no one enjoys that.

The sock monster strikes again: poor organization of receipts and invoices

Ever lose a sock in the dryer? 

Well, receipts are like socks - somehow they disappear just when you need them. 

You could be rifling through your glovebox, purse or a random junk drawer trying to find that one receipt, all while wondering what you did with it.

How to avoid this

Take a picture of your receipt as soon as you buy something - snap it, stash it and boom, no more missing sock, I mean, receipt. Make one day a week your “receipt day” to upload all those pictures to your accounting app or cloud storage. No more hunting for that one elusive receipt!

Laundry adds up: ignoring petty cash transactions (small expenses add up)

Ignoring petty cash is like pretending those tiny messes you leave around the house aren’t eventually going to pile up into one big cluttered mess. 

Sure, it's only a $3 coffee here, a $7 lunch or a $2 parking fee there, but ignore them long enough, and by the end of the year, those little expenses could add up to hundreds of dollars

How to avoid this

Again, take a picture of every petty cash purchase receipt. On your “receipt day,” add those transactions to your bookkeeping system. You’ll be surprised how much tidier things look when everything is accounted for (and how those small amounts add up).

Sorting your whites and colours: don’t overlook categorization errors 

Misclassifying expenses is like mixing up your whites with your reds in the wash and nobody needs that kind of surprise. 

Mixing up your expenses can make your financial picture blurry, like a pair of jeans turning your entire load of laundry blue.

How to avoid this

Every month, check your expense categories just like you’d double-check whether you’re washing darks or lights. Take time to make sure everything is properly classified to avoid financial surprises later on.

Don’t ruin your favourite hoodie: failing to back up data

Imagine losing all your financial data in one fell swoop. 

It's like that sinking feeling when you realize your favourite hoodie got ruined because you didn’t read the care label. 

Avoid that horror story by backing up your bookkeeping data regularly.

How to avoid this

Once you've wrapped up your “receipt day,” take a few minutes to back up your data, whether it’s through cloud storage or an external drive. Or better yet, set up automatic backups.

Final spin (thoughts)

Bookkeeping, like laundry, is one of those necessary tasks that you can't ignore for too long. 

It may seem tedious, but when you stay on top of it, your finances (and your closet) stay organized and manageable. 

So, gather those receipts, categorize your expenses and give your business the financial attention it deserves!

Now, if only laundry could be as satisfying as keeping your books in order.