Your Bookkeeping Junk Drawer: What’s Hiding in Yours?

March 9, 2025

A Note From @Tos.Boss

Good morning! ?

It’s Sunday—how was your week? Busy? Same here. I’m still knee-deep in getting ready for the CPA.

This week I dusted off an article I wrote a while back about one of my biggest pet peeves—the infamous Miscellaneous account. Now’s the perfect time to review your Profit & Loss report and make sure that sneaky catch-all isn’t lurking in there. If it is, time to clean it out!

Oh, and just below this note, you’ll find a link to a podcast interview I did in February. It seems to have resonated well, and I’ve even made some new LinkedIn connections from it—ones that aren’t trying to sell me something. For real! ?? Click the image to listen or save it for later.

Hope you have a great Sunday!

Republished from September 2020

by Dida Clifton

We all have one. The junk drawer. You know the one—it started as a single kitchen drawer for things that didn’t have a proper home. A few pens, some old business cards, a screwdriver, maybe even a takeout menu from a restaurant that closed three years ago (but, hey, just in case). Before you know it, that one drawer turns into two, then three, and suddenly, tools from the garage are making their way in. That’s when you know things are getting serious.

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And why does this happen? Simple. We’re too busy (or let’s be honest—too lazy) to put things where they actually belong. Or we’re afraid to throw them away because we might need them someday.

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Now, let’s talk about your bookkeeping.

Most business owners have a junk drawer in their financials too. It’s called Miscellaneous or Uncategorized.?It’s where transactions go when you don’t know what to do with them, and it starts filling up the same way the kitchen junk drawer does—little by little, until one day, it’s a full-blown mess.

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How It Happens

If you’re doing your own bookkeeping, you’re not alone. The accounting software makes it easy—most even come with an Uncategorized or? Miscellaneous category and an “Ask My Accountant” option right out of the box. Seems helpful at first, but if you’re not actually asking your accountant, that category is just a black hole for transactions. Out of sight, out of mind.

And then tax time rolls around.

Or you need a loan.

Or you’re trying to figure out why your profit margin isn’t what you thought it was.

Suddenly, all those “I’ll figure it out later” transactions need answers, and digging through them is like cleaning out the junk drawer—you don’t even remember half of what’s in there.

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The Fix: Stop Letting Transactions Pile Up

The truth is, everything has a place. Miscellaneous and Uncategorized shouldn’t be part of your bookkeeping system. Neither should “Ask My Accountant” unless you actually have an accountant and actually ask them.

So, here’s a simple trick: If you’re tempted to use those categories, create a new one instead—something that forces you to take action. I recommend putter your name in the title.? Call it:

?? “I Don’t Know” ?? “Ask Your Name Here” ?? “Figure This Out Before Tax Season”

The key is to review your Profit & Loss and Balance Sheet every month and move things where they actually belong before they pile up. The longer you wait, the bigger the mess, and less likely you'll remember what that thing was.

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Need Help Cleaning Out the Junk Drawer?

That’s what we’re here for. TheOfficeSquad has a trained team of bookkeeping pros who can keep your financials clean and categorized, so you always know where your money is going. We handle as much (or as little) as you’re ready to delegate—monthly reconciliations, reviewing transactions, making sure every dollar is in the right place.

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Ready to stop stuffing transactions into the bookkeeping junk drawer? Let’s get it cleaned up. Give us a call at 702-649-3495—your squad is standing by. Email [email protected] or visit https://www.theofficesquad.com/contact-us