This Podcast Is Episode Number 0346, And It's About Common Bookkeeping Pitfalls And The Value Of Outsourced Accounting Although most construction company owners recognize the importance of careful financial management, few want to spend their time dealing with numbers. Unfortunately, not keeping a close eye on your income and expenses can be very costly for a business.   Here are five of the most common bookkeeping pitfalls, and some simple tips for getting back on track. 1. Mixing business and personal All too often, contractors adapt a "buy now, sort later" approach to expenses, using the same credit card for personal and professional purchases. At the end of the month, they're left poring over statements, trying to sort things out. Mixing business and personal expenses cost extra hours of bookkeeping each month and muddles your overall financial picture. Avoid this pitfall by using a separate credit card and bank account for business, and being disciplined about separating expenditures. 2. Neglecting to track reimbursable expenses Receipt-tracking is a necessary part of business ownership. You need to keep track of receipts to understand spending patterns and effectively manage your company's finances. And if you want to claim deductions at tax time, you'll need to submit receipts along with your tax return.  But far too many business owners take a haphazard approach to collecting and organizing receipts—especially while on-the-go, where a whopping 50% of their expenses are generated. Get the deductions you deserve and simplify tax prep by using an expense-tracking app. We have a directory of additional resources of apps and software for contractors that can record mileage, billable hours, and other expenditures, as well as generate expense reports. Plus, many of these apps sync seamlessly with your business bank account and accounting software. 3. Not taking advantage of technology Are you still relying on manual accounting methods? While basic spreadsheet tools can get the job done, they leave the door wide open for human error. Mortgage loan giant, Fannie Mae, once uncovered a $1.1 billion error on their Excel spreadsheet, citing "honest mistake" as the cause. What's more, manual methods can't match the technological benefits offered by software like QuickBooks or Xero. These systems track invoicing, link with your credit card and business account, organize expenses, and generate insightful financial reports. 4. Not keeping accounts up to date Let's be frank. Most construction business owners don't look forward to that weekly appointment with "the books." Many entrepreneurs cite bookkeeping as their most dreaded responsibility and will find a host of reasons to avoid it. 5. Doing it all yourself It is entirely understandable for budget-conscious entrepreneurs to try to cut costs by handling bookkeeping on their own. However, taking advantage of professional help—even on a part-time basis—can generate substantial savings of time and money over the long term. "Outsource your weaknesses." So says start-up guru, Sujan Patel, when advising small business owners to get outside help for tasks like payroll and bookkeeping. And when you consider that 70% of businesses fail due to poor in-house financial management, Patel's advice seems spot on. Unfortunately, many small business owners seek to keep costs low by doing everything themselves— unwittingly sabotaging the financial stability of their own company. If numbers aren't your strength and you would instead focus on building your business, it's time to hire a bookkeeper.  Here are four ways to ensure that you find the right fit. Choose a bookkeeper with experience in your industry. The nuances of bookkeeping vary from one corner of the market to another. When assessing candidates, it's important to look not only at total years of experience but also at the relevance of that experience. As an example, your business...