Bookkeeping may seem straightforward, but even small mistakes can snowball into major financial problems. From cash flow gaps to compliance issues, these errors can cost businesses thousands — and often go unnoticed until it’s too late.
In a recent episode of Building the Premier Accounting Firm, host Roger Knecht sat down with Leeroy Beeby, co-founder of Level Co-Pilot, an AI-powered error detection tool for QuickBooks Online. Drawing on his experience scaling a construction-focused accounting firm to seven figures in just 18 months, Leeroy revealed the most common bookkeeping mistakes and how to fix them.
Meet the Expert – Leeroy Beeby
Leeroy’s journey began in South Africa, where he witnessed the financial struggles of his entrepreneurial parents. After earning his chartered accountant designation at KPMG, he worked as a consultant in Bermuda, helping businesses implement accounting systems. Later, he completed his MBA at the University of Toronto and launched a niche construction accounting firm that grew to seven figures in under two years.
That rapid growth revealed a challenge: scaling a team while maintaining quality assurance. The solution? Building Level Co-Pilot, software that detects bookkeeping errors early, helping firms save time, retain clients, and protect profit margins.
1. Missing Vendor or Customer Information
The Problem: Transactions without proper vendor or customer details lead to incomplete reports and compliance headaches.
The Fix: Standardize vendor assignment for every transaction. Use QuickBooks’ required fields and review entries weekly to ensure accuracy.
2. Inconsistent Expense Account Categorization
The Problem: Misclassifying expenses distorts financial reports and tax filings, making it hard to assess true profitability.
The Fix: Create a clear chart of accounts and apply consistent rules. Set up automation in QuickBooks to default recurring expenses to the correct categories.
3. Incorrect Sales Tax Treatment
The Problem: Applying the wrong tax codes can trigger costly penalties and client disputes.
The Fix: Automate tax rules for each customer and vendor. Review exceptions monthly to ensure accuracy. For complex cases, involve a tax specialist.
4. Delayed Bank Reconciliations
The Problem: Waiting until month-end to reconcile bank accounts delays error detection and impacts cash flow management.
The Fix: Move to weekly or bi-weekly reconciliations. QuickBooks bank feed alerts can help flag uncleared or unreconciled transactions early.
5. Not Tracking Job or Project Costs Accurately
The Problem: In industries like construction, failing to allocate expenses to specific jobs leads to inaccurate profit margin calculations.
The Fix: Implement job costing software and track how much working capital is tied up in each project. This visibility helps identify risk areas before they affect payroll or project delivery.
How AI Can Help Prevent These Errors
Manual reviews are time-consuming and error-prone. AI-powered tools like Level Co-Pilot integrate with QuickBooks to:
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Flag inconsistent data entry
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Detect sudden spikes in transaction volume
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Highlight unreconciled transactions
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Alert you to high-risk clients
By catching issues in real time, firms can reduce month-end bottlenecks, shorten onboarding for new staff, and deliver consistent service quality.
Learn More from Leeroy Beeby
These five errors are just the tip of the iceberg when it comes to bookkeeping challenges. In the full Building the Premier Accounting Firm episode, Leeroy Beeby shares his proven strategies for:
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Niching down to grow faster
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Building affiliate partnerships for lead generation
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Scaling a remote accounting team without sacrificing quality
Listen to the full interview with Leeroy Beeby and Roger Knecht for practical insights that can help you grow your firm, improve accuracy, and embrace technology to stay competitive.
Offers:
LEVEL: For a limited time, Start a free trial @ https://www.checkthelevel.com/
Error Detection Software, Bookkeeping Copilot is dedicated to simplifying your bookkeeping process by providing automated assistance and insightful guidance on a daily basis. Our goal is to empower your bookkeeping, enhancing accuracy, and ensuring compliance, all while reducing the time spent on repetitive tasks.
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