KPMG Spark Blog

3 Bookkeeping Leading Practices

Whether you get your bookkeeping done with a professional—as you get with us at KPMG Spark—or you do it all on your own, there are important things you can do to make it easier for you and your bookkeeper. Here, we will outline three leading practices for bookkeeping we recommend to our clients.

Regardless of the size of your business or the industry your business is in, there are a few leading practices we recommend to our clients in order to be successful. Additionally, having your records organized will lead to more accurate representations of your company and will help you make better financial decisions. Whether you get your bookkeeping done with a professional—as you get with us at KPMG Spark—or you do it all on your own, there are important things you can do to make it easier for you and your bookkeeper.

1 - Separate Business and Personal Finances

Separating your personal and business finances may seem obvious, but the line between business and personal finance is frequently blurred with small business owners. If your business and personal accounts are intermingled, it is a recommended leading practice to separate them by obtaining specific business checking and business credit card accounts. Our bookkeepers recommend that personal accounts should not be used for business transactions, nor should business accounts be used for personal transactions. Having business-only checking and credit card accounts helps you keep business finances and records distinct from personal, maintain accurate bookkeeping, and grow effectively. Mixing the two leads to more time and effort determining whether transactions are business or personal when it comes to bookkeeping and filing taxes.

2 - Follow Your Business Entity Type

When starting your business, you will have to elect an entity type. As more time goes on, and as your business grows and develops, it is easy to forget your entity election or to forget certain accounting and tax treatments that exist for your entity type.

The business entity type determines how an owner’s cash contributions and distributions are recorded, how taxes are paid, and whether or not owners must be employees- just to name a few. It is important to work with your bookkeeper and tax accountant to help transactions flow through your business in accordance with your business entity type. Not adhering to necessary and required accounting and tax treatment could lead to difficulties during an audit by the IRS and state taxing authorities. With real-time access to bookkeepers and tax professionals at KPMG Spark, you can feel confident your business transactions are adhering to entity type accounting and tax treatment.

3 - Frequently Review Your Bookkeeping

Frequently reviewing your books (we recommend at least once a month) is imperative in knowing the financial health and standing of your business. Being familiar with your financials allows you to make better financial decisions – whether that is ordering new supplies or inventory, hiring new employees, or cutting spending in certain areas.

If you’re not reviewing your books, you might miss a duplicate transaction and have overstated expenses. Relying on inaccurate information could cause you to spend money you don’t have, which could lead to incurring debt that could be avoided if you regularly check on your bookkeeping. Frequently reviewing your books allows you to budget more effectively, identify where money is being overspent, identify irregularities or disparities, identify new growth opportunities, and have easier access to capital.

At KPMG Spark, you can trust your dedicated bookkeeper to work with you and handle your financial records. Your bookkeeping team is always just a call, email, or text away from keeping you up to date on your finances. Give us a call at 1-855-777-7696 or visit our website to schedule a consultation today!


 The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG LLP.

This blog article is not intended to address or provide advice concerning the specific circumstances of any particular individual or entity and does not constitute an endorsement of any entity or its products or services.

Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.

The following information is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230. The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.

Ben AsplundDecember 15, 2020Posted In: Business Tips


This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

KPMG Spark is an online accounting service that saves you time so you can focus on what’s most important for your business.

How I Am Kid Culture Teaches Youth About Intrinsic Value

Wrongfully imprisoned for 25 years, founder Patrick Pursely uses KPMG Spark to help keep his organization operating as a registered nonprofit.

KPMG SparkJuly 27, 2021Posted In: Client Stories

5 Steps to Successful Remote Hiring

Remote work isn't new, but it seems to have now shifted from a rare perk to the norm for many businesses. This change has many benefits for small businesses. Remote work now allows business owners to find the best talent regardless of their location. However, hiring remotely is different from in-person hiring, and small business owners need to know how to approach the process.

KPMG SparkJuly 20, 2021Posted In: Business Tips

Client Story: It’s the Little Things That Count

How innovation and KPMG Spark have helped this family-owned pen company provide opportunities for adults with disabilities.

KPMG SparkJuly 14, 2021Posted In: Client Stories
Image of person doing bookkeeping at a desk

Why Is Bookkeeping Important In 2021?

Starting a business can be a busy time for any entrepreneur and to some, worrying about bookkeeping can seem like an unnecessary task. But, as intimidating as it may be to have a bookkeeper, there are many benefits to online bookkeeping and a strong accounting platform; and several problems can arise when a business does not keep their bookkeeping up to date.

KPMG SparkJune 29, 2021Posted In: Accounting Info

How to Support Women Entrepreneurs in 2021

KPMG is committed to empowering women in the workplace, marketplace, and community. Join us to learn more about how to support women entrepreneurs in 2021.

KPMG SparkJune 22, 2021Posted In: Business Tips

How to Pivot Your Product Line

It’s easy for business owners to become attached to the dream they had when they first started the company. But what happens when a product flops? Don’t worry. A failed product launch doesn’t have to mean your company is doomed to fail. Join us to learn better how to pivot your company's product line.

KPMG SparkJune 15, 2021Posted In: Business Tips

How to Know If Your Small Business Qualifies for the R&D Credit

The Research and Development (R&D) tax credit is a tax incentive for companies that perform qualified research in the U.S. Let's take a closer look at this tax credit and see how it can help your business.

KPMG SparkJune 8, 2021Posted In: Tax Tips

COVID and Taxes: Tax Breaks That You Should Know

Despite the ongoing COVID-19 pandemic, tax time is finally here, and it’s important for everyone to learn more about all of the new tax opportunities that small businesses may qualify for.

Trevor ReillyJune 2, 2021Posted In: Tax Tips

Paycheck Protection Program (PPP)

Small business stimulus funds are back with $284 billion in forgivable loans. Eligible businesses can receive 2.5x their 2019 payroll up to $2 million in forgivable PPP funds. Join us to see how you can get access to these funds.

Trevor ReillyMay 18, 2021Posted In: Business Tips