Beware of Uncle Jim’s* bookkeeping advice

Almost every new business owner has someone they can ask for advice: a relative, friend, neighbor, or fellow business owner who’s been doing this for years.

Their experience can be incredibly valuable. But experience and expertise aren’t always the same thing.

Be especially cautious when the explanation for a bookkeeping or tax procedure is some variation of, “I’ve always done it this way and nobody’s come after me yet.”

Something can go unnoticed for years without being correct. Rules also change, and what’s appropriate for one business may be completely wrong for another. When the question involves bookkeeping, taxes, payroll, or compliance, find out what applies to your business and verify important information with a reliable source.

Uncle Jim may give excellent business advice. Just don’t make “nobody’s caught me yet” part of your accounting policy.

(*A note to the Jims of the world: We chose “Uncle Jim” for no reason other than that James is reported by the Social Security Administration as the most common male first name in the U.S. over the past 100 years. Any resemblance to an actual Uncle Jim dispensing questionable bookkeeping advice is purely coincidental.)