Tips to Avoid Making Costly Bookkeeping Mistakes

by | Oct 13, 2020 | Accounting, Internal Revenue Service

The Most Common (& Expensive) Bookkeeping Mistakes:

Incorrect Payroll Reporting: If you currently have employees and/or plan on having them in the future, then you will need to become very familiar with payroll taxes, inclusive of the various tax forms and remittance schedules. Payroll errors such as miscalculations of employee wages and classification, along with a miscalculation of corresponding taxes owed and errors on required forms are frequent as business owners are experts of their business, however not trained in payroll.

Bank Reconciliation Errors: When you reconcile your bank statement, you are effectively comparing, or cross referencing, it with your bookkeeping records for a certain period, recording discrepancies along the way. This allows you, or your accountant, to be certain your figures and bottom line make perfect financial sense.

If you do your bookkeeping yourself, you should be prepared to reconcile your bank statements on a fixed schedule. If you work with an accountant, such as a CPA,  they’ll handle it for you each month or quarter, depending on your need. Having Accountant Access in place, permits read only account access for finance professionals to certain bank information to help ensure timely and accurate reports. 

Misreporting Income and/or Expenses: Failure to track accurate business costs, potentially mixing business with personal expenses, or comingling of funds, could bring hefty penalties and interests during tax season, putting your business at risk. Recording even the smallest of transactions and coding appropriately ensures accruacy and keeps records clean and up to date.

Lack of Understanding your Accounting System: Having proper reporting in place and thoroughly understanding your software allows for checks, balances and decreases the odds of mistakes. 

Failure to Properly Plan for Tax Season: Tax planning is an ongoing process which is of great benefit to your business. Reviewing your income and expenses and meeting with your CPA or tax advisor regularly allows you to analyze and take advantage of tax credits and deductions that are legally available to you. A lack of tax efficiency will hinder your growth and result in poor business practices over the years, potentially leading to an audit or cash flow problems.

Hiring an experienced finance professional can save your business time and money, while ensuring accuracy and precision of detailed records and reporting. Hiring a CPA means that you will be prepared come tax time, having increased your tax efficiency within IRS guidelines to better serve your bottom line.

Give our dedicated firm a call at (248) 934-0550 if you would like to learn more about our business consulting, tax planning opportunities and Client Accounting Services. 

Click HERE to access the Client Portal.

Contact Us

9 + 7 =

Always remember, Senter, CPA is here for you if you need any assistance.

Don't hesitate to give us a call at 248-934-0550, or contact us below.

How to make Federal & State Income Tax Payments (update January 2026)

Paying federal and Michigan income taxes is pretty straightforward and are now required to be paid online.

2025 Individual Tax Return Process

At Senter, CPA, our goal is to make your tax preparation experience as seamless and efficient as possible.

What are QCD’s?

Qualified Charitable Distributions (QCDs) are a tax-efficient way for eligible IRA owners to support charitable organizations while managing taxable income. Individuals who are age 70½ or older may donate up to $108,000 in 2025 directly from a traditional IRA to a qualified charity. When structured properly, a QCD is excluded from taxable income, may satisfy Required Minimum Distribution (RMD) requirements, and can help reduce overall tax liability.

Common Tax Documentation for 2025 Tax Season

Getting your tax documents organized for your preparer can feel overwhelming—but you don’t have to do it alone. One of the most common questions we hear is, “What documents do I need for my individual tax return?”

2025 Senter, CPA Year in Review

Reflecting on 2025, Senter CPA has experienced significant growth and success, both personally and professionally. As we roll into 2026, we’re heading into our ninth year as a firm. That’s wild. It honestly feels like just yesterday that we unlocked the doors on January 1, 2018.

URGENT: New Electronic Payment Requirements

Tax season is getting a serious tech upgrade.

New Schedule C Excel Worksheet For 2025

If you file Schedule C as a sole proprietor or single-member LLC, you already know how detailed the IRS can be. The form requires a thorough breakdown of your business income and expenses, leaving little room for guesswork. Schedule C is the primary IRS form used to report your business’s profit or loss and completing it accurately is essential for both compliance and tax planning.

New Schedule E Excel Worksheet For 2025

If you report rental income on Schedule E, you already know the IRS wants your numbers broken out by category and by property. Schedule E is the main IRS form used to report rental real estate income and expenses on your personal return, and clean detail makes prep faster and cuts down on follow-ups.

Help Us Keep Spreading the Senter CPA Magic!

First off—thank you for being part of the Senter, CPA, P.C. family! Whether we helped untangle your taxes, guided your business through accounting complexities, or simply answered that one stubborn finance question that was bugging you, we hope we’ve made your financial life a little easier (and maybe even a little brighter!). Now, we’re turning to you—not for more numbers or forms—but for just a few kind words.

Preparing for 2025: Senter CPA Explains Key Tax Law Changes Affecting Social Security

Recent tax legislation has introduced changes that may impact how Social Security benefits are taxed—especially for seniors with lower to moderate incomes. While the core rules around taxation of Social Security remain in place, new deductions and adjustments could offer relief for many retirees.