Transaction Coding Nightmares

November 4, 2019

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Coding can be critical, but it also shouldn’t be the end all be all of how you’re dealing with your bookkeeping. 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 all right.

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 record-keeping is and that is to make good decisions. If the expense is in category A versus B, the tax returns are still okay. The net income will still remain the same.

Don’t kill yourself over trying to be so precise. And if you notice that things might be a different category from your 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 him expense A instead of expense B.  Be Calm and Recode!

Donna Bordeaux, CPA with Calculated Moves

Creativity and CPAs don’t generally go together.  Most people think of CPAs as nerdy accountants who can’t talk with people.  Well, it’s time to break that stereotype.  Lively, friendly and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna and Chad Bordeaux.  They have over 50 years of combined experience as entrepreneurial CPAs.  They’ve owned businesses and helped business owners exceed their wildest dreams.   They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.