Roadblocks to Year End (How to avoid having a million ask transactions).
From time to time, there will be transactions your bookkeeper has questions about. The name of the vendor may not be an obvious clue and a google search may not lend any answers. Other times, the amounts are out of the norm. And don’t get me started on how a purchase from Amazon can be literally ANYTHING. Here are a few things you can do / avoid if you want to keep that “Ask Report” from taking over your life:
Venmo is so convenient for the user, but it’s a nightmare for your bookkeeper. We generally cannot see WHO you sent money to, so we have to ask. Every. Single. Time. If you are absolutely committed to using it, keep in mind that you will have to do a little extra work to make sure they get categorized correctly.
Personal transactions mixed in with your business transactions are a bad idea for many reasons, but definitely for purchases that could go either way, because we’re gonna have to ask. That’s more time lost for you AND your bookkeeper.
Communicating about purchases that are out of the ordinary really help us out. A quick email that lets us know you made a large purchase, or got a new loan or made a contribution really helps streamline the process.
Staying on top of the list is really the number one thing you can do to keep your bookkeeping up to date. I can’t overstate how fast it can get out of hand when you put it off. At the end of the year, there’s a rush to get those answered and categorized for tax season. Spoiler alert: clients that are diligent about answering ask transactions get priority when it’s time to close out the year because they don’t require a bunch of clean up.
Questions are inevitable, but with some preventative measures, you can avoid being overwhelmed with a giant list as tax time is looming. Speaking of tax time looming…did we mention that we will be putting new clients on hold very soon so we can focus on year end? If you need bookkeeping help, NOW is the time to get on board! Go to missoulabookkeeper.com/book-a-consult to schedule a free consultation.
