💡 BOOKKEEPING TIP · Profit In Your Pajamas

💡 BOOKKEEPING TIP

What to do when you don't know how to categorize a transaction.

This happens to every bookkeeper. Experienced or beginner. You see a transaction. You are not sure which account it belongs in. And suddenly the whole task feels harder than it should.

Here is your three-step process for exactly this moment:

**Step 1 — Ask yourself: is this money coming in or going out?** That narrows it immediately to income or expense (or asset/liability).

**Step 2 — Ask: what was it FOR?** Office supplies? A software subscription? Travel? Match the purpose to the closest category in the Chart of Accounts.

**Step 3 — When still unsure: use 'Ask My Accountant'** and leave a note for the client's CPA.

Never guess with someone else's money. It is always better to ask than to assume. 💛 What bookkeeping question have you been sitting on?

Drop it in the comments This is exactly what this community is for. 🌺

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💡 BOOKKEEPING TIP