{"id":202,"date":"2024-09-04T17:39:33","date_gmt":"2024-09-04T17:39:33","guid":{"rendered":"https:\/\/www.andrewsamaniego.com\/blog\/?p=202"},"modified":"2024-09-04T17:39:34","modified_gmt":"2024-09-04T17:39:34","slug":"why-ignoring-your-bookkeeping-could-be-the-worst-financial-mistake-of-your-life","status":"publish","type":"post","link":"https:\/\/www.andrewsamaniego.com\/blog\/why-ignoring-your-bookkeeping-could-be-the-worst-financial-mistake-of-your-life\/","title":{"rendered":"Why Ignoring Your Bookkeeping Could Be the Worst Financial Mistake of Your Life"},"content":{"rendered":"\n
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You’ve got a business to run, a life to live, and maybe even a mountain of debt hanging over your head. And what’s sitting on your desk? A mountain of receipts and a pile of unopened letters from the IRS.<\/p>\n\n\n\n

Now, I know what you’re thinking. “I’ll deal with it later.” But let me tell you something\u2014later isn’t good enough. Ignoring your bookkeeping isn’t just lazy; it\u2019s a financial disaster waiting to happen.<\/p>\n\n\n\n

You see, without proper bookkeeping, you’re flying blind. You don’t know where your money is coming from, where it’s going, or worse\u2014how much you owe the IRS. And if you think the IRS is just going to forget about you, think again. They have a long memory, and they aren’t shy about coming after what they’re owed.<\/p>\n\n\n\n

But there\u2019s a silver lining here\u2014a way out if you’re willing to take action.<\/p>\n\n\n\n

First things first: Gather every financial document you can find. I don\u2019t care if it\u2019s crumpled in a shoebox or buried under old magazines. You need to know what you\u2019re dealing with.<\/p>\n\n\n\n

Then, use some technology to your advantage. Get yourself some good accounting software\u2014QuickBooks, Xero, whatever works for you. These tools can make a world of difference in keeping your finances organized and, more importantly, in keeping you sane.<\/p>\n\n\n\n

Now, here\u2019s where it gets interesting. Ever heard of the Cohan Rule? If not, let me introduce you to your new best friend. Named after George M. Cohan, a guy who knew how to play the system, the Cohan Rule lets you estimate your expenses even if you don\u2019t have all the receipts. Yep, you read that right.<\/p>\n\n\n\n

But hold on\u2014don\u2019t start celebrating just yet. The Cohan Rule isn’t a free pass to fudge your numbers. You need a reasonable basis for your estimates. That means showing some form of evidence, like bank statements or credit card records, to back up your claims. The IRS might let you slide with a reasonable estimate, but they\u2019re not stupid.<\/p>\n\n\n\n

Once you\u2019ve cleaned up your books and know exactly what you owe, set up a system to keep it that way. Dedicate a regular time each week to update your records. Make it a habit, just like brushing your teeth. You wouldn\u2019t go a week without brushing your teeth, right? So why would you go a week without keeping your books in order?<\/p>\n\n\n\n

And if this all sounds like too much, or if you’re not sure where to start, get some help. A bookkeeper or an Enrolled Agent can make all the difference. They can ensure your records are accurate, help you stay on top of things, and keep the IRS off your back.<\/p>\n\n\n\n

Look, catching up on bookkeeping isn’t glamorous. It\u2019s not fun. But it’s one of the best things you can do for your business and your peace of mind. And trust me, when the IRS comes knocking, you’ll be glad you did.<\/p>\n\n\n\n

So roll up your sleeves, dive into those records, and take control of your financial future. Because ignoring your bookkeeping? That\u2019s the worst mistake you could make.<\/p>\n\n\n\n

Now get to it! Your future self will thank you.<\/p>\n\n\n\n

Want to dive deeper into this topic and get some practical tips on how to catch up on your bookkeeping? Check out my latest YouTube video<\/a> where I break it all down step by step. Click the link and let\u2019s get those books in order together!<\/strong><\/p>\n\n\n\n

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Andrew Samaniego, EA,<\/strong> CTRC<\/strong>, MSCTA<\/strong><\/p>\n\n\n\n

Andrew Samaniego Tax Planning & Resolution<\/strong><\/p>\n\n\n\n

(619) 268-1084<\/a>  |  AndrewSamaniego.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

You’ve got a business to run, a life to live, and maybe even a mountain of debt hanging over your head. And what’s sitting on your desk? A mountain of receipts and a pile of unopened letters from the IRS. Now, I know what you’re thinking. “I’ll deal with it later.” But let me tell […]<\/p>\n","protected":false},"author":2,"featured_media":203,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[15,31,8,9,10,7],"tags":[16,21,26,20,14,11,19,12],"class_list":{"0":"post-202","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-back-taxes","8":"category-non-filer","9":"category-small-business","10":"category-tax-debt","11":"category-tax-resolution","12":"category-tax-tips","13":"tag-back-taxes","14":"tag-enrolled-agent","15":"tag-ftb","16":"tag-irs","17":"tag-non-filers","18":"tag-tax-debt","19":"tag-tax-issues","20":"tag-tax-resolution","21":"entry"},"_links":{"self":[{"href":"https:\/\/www.andrewsamaniego.com\/blog\/wp-json\/wp\/v2\/posts\/202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.andrewsamaniego.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.andrewsamaniego.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.andrewsamaniego.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.andrewsamaniego.com\/blog\/wp-json\/wp\/v2\/comments?post=202"}],"version-history":[{"count":1,"href":"https:\/\/www.andrewsamaniego.com\/blog\/wp-json\/wp\/v2\/posts\/202\/revisions"}],"predecessor-version":[{"id":204,"href":"https:\/\/www.andrewsamaniego.com\/blog\/wp-json\/wp\/v2\/posts\/202\/revisions\/204"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.andrewsamaniego.com\/blog\/wp-json\/wp\/v2\/media\/203"}],"wp:attachment":[{"href":"https:\/\/www.andrewsamaniego.com\/blog\/wp-json\/wp\/v2\/media?parent=202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.andrewsamaniego.com\/blog\/wp-json\/wp\/v2\/categories?post=202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.andrewsamaniego.com\/blog\/wp-json\/wp\/v2\/tags?post=202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}