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Donna Bourdeau explains why perfect account coding wastes time. Aim for practical accuracy that supports your business decisions, note minor differences without overreacting, and talk to your bookkeeper about real problems.
Donna Bourdeau explains why perfect account coding wastes time. Aim for practical accuracy that supports your business decisions, note minor differences without overreacting, and talk to your bookkeeper about real problems.
So coding can be critical, but it also shouldn't be the end all, be all of how you're dealing with your bookkeeping. In my case, my rule of thumb is let's make sure that the coding is accurate enough that it will cause us to still make the same valid decisions we would have otherwise. If something ends up in expense A versus expense B and it doesn't really change our decision making process, it's okay. It's alright. We don't need to be so precise that we suffer based on the amount of time that we spend. Look at what the purpose of the accounting and the recordkeeping is and that is to make good decisions. If the expense is in category A versus B, the tax return is still okay. The net income will still remain the same. So don't kill yourself over trying to be so precise. And if you notice that things might be in a different category from an opinion, say that your bookkeeper has put it in one place versus another. Don't overreact. It's probably okay. Yes, we want to be accurate and you can let them know and make sure that everything looks like it's going to the right places going forward. But it's not a matter of life or death if it's in expense A instead of expense B. So I'm Donna Bourdeau with this tip for you@calculatedmoves.com.
