7 BOOKKEEPING MISTAKES THAT REAL ESTATE BUSINESS OWNERS MAKE AND HOW TO AVOID THEM LEON MCKENZIE It may seem like a nuisance to keep good records, but when you need to account for your money to IRS or potential business buyers, you will thank yourself for doing so. Not only will you be able to stay out of trouble, but you will also be able to stay on top of reimbursable expenses that will help keep more money in your pocket. 4. Not Reconciling Your Bank And Credit Accounts If you have a good record of your business transactions but do not reconcile your bank and credit accounts, then there is no difference between you and hoarders who buys things that they do not use. What’s the point? Those receipts and statements you keep should be used to reconcile your credit and bank accounts. It is the only way for you to get a clear picture of your real estate business in terms of what you owe and how much you really own as equity and cash. So take time every week or month to balance the books. Don’t procrastinate until it is too late to save your business. 5. Setting Little Money Aside For Taxes And Other Bills Are you setting very little money for taxes? That’s probably the reason you get penalized often. How about a steady cash flow: are you always short of cash to run your business?