Figuring out my business accounting was backwards for 2 years

I run a small repair shop in Hamtramck and for the longest time I was just logging expenses whenever I remembered. Last month my accountant asked for my Q3 numbers and I realized I had like 5 receipts stuffed in a glovebox. The thing that tipped me off was when I tried to track a part I ordered in July and couldn't find any record of it in my spreadsheet. Turns out I was mixing up cash and credit transactions and double counting some stuff. Now I use a simple app that links to my bank account and tags everything as I go. It took me 2 years to figure out this basic habit. Has anyone else had a moment where you realized your whole system was broken?

3 comments

3 Comments

troy_price16d ago

Seasonal stuff messes up manual tracking every time though lol.

angelarivera15d ago

Turns out I was mixing up cash and credit transactions" - I mean, did you actually lose money from it or just annoy your accountant? I feel like small mistakes like that balance out over time unless you're talking serious cash. Honestly wondering if this is one of those things where we overthink a system that was basically working.

the_hayden16d ago

That system would have made me miss too many deductions and I actually prefer catching patterns by hand. Manual entry forced me to spot pricing errors I would have auto-approved otherwise.