Community Corner
Mikael La Ferla Explains the Biggest Bookkeeping Mistakes Philadelphia Small Business Owners Make
Avoiding common bookkeeping mistakes can help small businesses save time, reduce stress, and make better financial decisions.
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Running a small business means wearing many hats. Between serving customers, managing employees, and growing the business, bookkeeping often gets pushed to the bottom of the to-do list. According to Philadelphia accountant Mikael La Ferla, that can lead to problems that are much harder to fix later.
One of the biggest mistakes business owners make is waiting too long to update their books. When transactions pile up for weeks or months, it becomes more difficult to remember what expenses were for, find missing receipts, and identify mistakes. Keeping financial records current helps owners understand how their business is performing instead of trying to piece everything together at tax time.
Another common mistake is mixing personal and business spending. The Internal Revenue Service recommends maintaining accurate business records and separating business transactions from personal ones whenever possible. Doing so makes bookkeeping easier, helps support tax deductions, and reduces confusion when preparing financial statements.
Many owners also skip reconciling their bank accounts. Bank reconciliation simply means comparing your accounting records to your bank statement to make sure everything matches. It is one of the easiest ways to catch duplicate payments, missing deposits, bank errors, or fraudulent transactions before they become larger problems.
According to the U.S. Small Business Administration, maintaining organized financial records helps business owners manage cash flow, track expenses, prepare for taxes, and make better business decisions throughout the year.
Mikael La Ferla believes another mistake is only looking at financial information during tax season. Reviewing income and expenses every month allows owners to spot trends, control costs, and make adjustments before small issues become expensive ones. Waiting until the end of the year often means opportunities to improve the business have already passed.
This is the approach behind La Ferla Accounting. Founded by Mikael La Ferla, the Philadelphia-based firm provides bookkeeping and accounting support for small businesses and real estate owners, including monthly bookkeeping, financial reporting, bank reconciliations, accounts payable, bookkeeping cleanup, and real estate accounting. By keeping financial records organized throughout the year, business owners can spend less time worrying about paperwork and more time growing their businesses.
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