Running a small business is no small feat. You’re juggling sales, customer service, marketing, operations—and somewhere in the middle of it all, bookkeeping. We get it—bookkeeping doesn’t always feel like the most exciting task, but avoiding common pitfalls can save you time, stress, and a lot of money.

Here are the top 10 bookkeeping mistakes we see small business owners make—and how you can steer clear of them.

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1. Mixing Business and Personal Finances

Why it’s a problem: It makes tracking expenses a nightmare and can create tax and liability issues.
Fix it: Open a separate business bank account and credit card. Keep all transactions business-related.

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2. Falling Behind on Bookkeeping

Why it’s a problem: The longer you wait, the harder it is to catch up. You might miss tax deductions or forget essential transactions.
Fix it: Set aside time weekly or monthly—or better yet, outsource it to a pro.

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3. DIY Bookkeeping Without Training

Why it’s a problem: Misclassifying transactions or misunderstanding accounting software can lead to costly errors.
Fix it: Invest in an introductory bookkeeping course or hire a professional to handle it.

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4. Ignoring Bank Reconciliations

Why it’s a problem: Your books might not match your bank account, leading to inaccurate financials.
Fix it: Reconcile your bank and credit card statements monthly to catch errors or fraud early.

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5. Not Saving Receipts or Documentation

Why it’s a problem: You’ll struggle during tax time and could run into issues if audited.
Fix it: Use apps like QuickBooks Online to digitize and store receipts in real-time.

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6. Overlooking Small Expenses

Why it’s a problem: Little things add up—and they’re often deductible!
Fix it: Track every expense, no matter how small. A coffee meeting today is a tax write-off tomorrow.

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7. Not Backing Up Financial Data

Why it’s a problem: Tech fails, and losing your data can be a significant setback.
Fix it: Use cloud-based accounting software or regularly back up your files securely.

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8. Improperly Categorizing Expenses

Why it’s a problem: It messes up your reporting and can lead to incorrect tax filings.
Fix it: Use consistent, accurate categories—and ask your bookkeeper to help create a chart of accounts.

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9. Not Reviewing Financial Reports

Why it’s a problem: You’re flying blind if you don’t know your numbers.
Fix it: Review your profit & loss, balance sheet, and cash flow statements monthly to stay on track.

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10. Waiting Until Tax Season to Get Help

Why it’s a problem: A year’s worth of messy books = stress and last-minute scrambles.
Fix it: Partner with a bookkeeper year-round to keep everything clean and compliant.

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Final Thoughts

Bookkeeping mistakes are easy to make—but with the proper habits (and the right help), they’re just as easy to avoid. If you’re feeling overwhelmed or unsure whether your books are in good shape, we’re here to help.

👉 Let’s chat—we offer a free consultation to see how we can support your business and give you peace of mind with your numbers.