Accurate categorization matters more than perfect records. Use accounting software to track vendor transactions consistently, keep personal and business finances separate, and remember that wrong data is worse than no data.
What are bookkeeping best practices? Number 2, you have to be consistent in how you classify or categorize your transactions. It would almost be better to have no information than it would be to have a report that has completely incorrect information. Be consistent in how you categorize your transactions. In most accounting softwares, this is actually pretty easy. You can go up and see who the vendor was, And you can then pull up a list and you can see how all of the previous vendor transactions were classified. And so then you can see if you're being consistent or not. Number 3, keep your personal and business records separate.
