Using a “Miscellaneous” Account is poor Bookkeeping

If you use a “Miscellaneous Expense” account, it can indicate lazy bookkeeping. It is better to use the closest correct expense account or to add a new account to better capture the expense type. Also use the memo to fully describe the expense. The more detail you put in now, then you won’t have to sift through your papers later to find out what the expense was, or dig out a copy for your accountant (or the taxman).

Categories Bookkeeping, Consulting

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