102. What Clean Books Actually Look Like (And Why Yours Might Not Be as Clean as You Think)
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102. What Clean Books Actually Look Like (And Why Yours Might Not Be as Clean as You Think)
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In this episode, Erica talks through into the fundamentals of maintaining 'clean' business books. She explains what clean books should look like, the common issues that can arise, and how these issues can affect financial planning and tax reporting. Erica provides tips on identifying and rectifying issues such as inconsistent categorization, unreconciled balance sheets, uncategorized expenses, misreported owner distributions, and mixing personal and business expenses. She also offers actionable steps for consultants to take to ensure their books are accurate and useful.
00:00 Introduction to Consultants and Money
00:52 Understanding Clean Books
01:53 Signs Your Books Aren't Clean
04:38 Common Bookkeeping Mistakes
06:06 What Clean Books Look Like
07:20 Key Financial Reports
08:02 Steps to Fix Your Books
09:06 Conclusion and Final Tips
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