Coaches & Consultants: 5 Bookkeeping Mistakes to Avoid This Tax Season
If you're a coach, consultant, or professional service provider, you already know that tax season can be a headache—especially if your books are a mess.
Whether you're just getting started or scaling to $500K+ per year, one thing is certain: clean, accurate bookkeeping is essential to financial success and peace of mind.
At DBR Bookkeeping, we work with service-based businesses across Northwest Arkansas and beyond to help streamline finances and avoid these common pitfalls:
1. Not Tracking Income by Client or Program
A common oversight is failing to track income per client or project. When everything is lumped together, you lose visibility into what’s actually profitable.
By using QuickBooks Online, you can categorize income streams by client, package, or service. This not only helps you during tax season, but it also tells you which offers are driving the most revenue.
2. Neglecting Invoicing Automation
Late invoices? Lost payments? It’s a recipe for cash flow stress.
Automate your invoicing with QuickBooks or another system to keep money moving and clients accountable. With recurring billing and reminders, you can reduce missed payments and stay organized.
3. Ignoring Monthly Reporting
Most consultants are focused on the day-to-day, but overlooking monthly financial reports means you’re flying blind.
Make it a habit to review your Profit & Loss and Cash Flow reports. These reports help you see which offers are working, where your expenses are climbing, and what changes you need to make.
4. Mixing Personal and Business Finances
This is a top mistake for small business owners. If you’re swiping your personal card for business purchases, your bookkeeping will get messy fast.
Open a dedicated business bank account and keep everything clean and separate. Your future self (and your tax preparer) will thank you.
5. Trying to Do It All Yourself
Just because you can figure it out doesn’t mean you should. The cost of DIY bookkeeping often shows up in overpaid taxes and lost time.
A professional bookkeeper can help you build a simple, scalable system, optimize QuickBooks, and free you up to focus on what you do best—serving your clients.
Frequently Asked Questions (FAQ)
Q: What's the best way to track income from multiple clients or programs?
A: Use a bookkeeping tool like QuickBooks Online to tag income by client, service, or offer.
Q: How can I automate my invoicing?
A: Set up recurring invoices and automatic payment reminders in QuickBooks or a CRM with billing features.
Q: What financial reports should I review monthly?
A: Focus on Profit & Loss, Cash Flow, and a monthly review of outstanding invoices or receivables.
Q: Can I use personal accounts for business expenses?
A: No. Always use a separate business checking account for clarity and compliance.
Get Your Books Ready for Tax Season
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