Top 10 Bookkeeping Mistakes Small Business Owners Make (and How to Avoid Them)
Running a small business is no easy task. Between managing clients, marketing your services, and trying to grow, it's easy to overlook your financial records. But poor bookkeeping can cost you thousands — in missed deductions, overpaid taxes, and cash flow issues.
Here are the top 10 bookkeeping mistakes small business owners make — and how you can avoid them.
1. Mixing Personal and Business Finances
Using the same bank account for groceries and client invoices? Not only is it messy — it’s a nightmare at tax time.
👉 Fix it: Open a dedicated business account and credit card.
2. Falling Behind on Recordkeeping
Waiting until tax season to organize receipts? That’s like cramming for a final the night before.
👉 Fix it: Set aside 15–30 minutes weekly for bookkeeping.
3. Not Reconciling Bank Accounts
If you’re not reconciling monthly, you could miss errors or fraud.
👉 Fix it: Reconcile your accounts monthly using bookkeeping software like QuickBooks Online.
4. Forgetting to Track All Expenses
Untracked expenses = lost tax deductions.
👉 Fix it: Use apps like QuickBooks or Keeper to snap and categorize receipts in real-time.
5. DIYing Without the Know-How
Trying to “wing it” can lead to serious errors and costly mistakes.
👉 Fix it: Learn bookkeeping basics or hire a professional to guide you.
6. Not Reviewing Financial Reports
Your profit & loss report isn’t just for your CPA — it’s a business roadmap.
👉 Fix it: Review monthly reports to stay informed and make better decisions.
7. Improper Categorization of Transactions
Misclassifying expenses can trigger IRS red flags or reduce your deductions.
👉 Fix it: Learn standard categories or have a pro review your chart of accounts.
8. Ignoring Accounts Receivable
Letting invoices pile up unpaid hurts your cash flow.
👉 Fix it: Set clear payment terms and follow up promptly.
9. Not Backing Up Data
If your computer crashes and your records are gone — yikes.
👉 Fix it: Use cloud-based software with automatic backup.
10. Waiting Too Long to Get Help
Bookkeeping problems grow the longer you avoid them.
👉 Fix it: Get help early to avoid expensive cleanups.
✅ Ready to stop guessing and start Doing Business Right?
📅 Schedule a FREE 30-minute call with Dr. Bryan Raya today:
👉 https://calendly.com/dbr_bookkeeping/30-minute-zoom-consultation-call
📌 FAQ
Do I need a bookkeeper if I use QuickBooks?
QuickBooks is a tool — but a professional ensures it’s used correctly and customized to your business.
Can I fix old bookkeeping mistakes?
Absolutely. DBR Bookkeeping specializes in QuickBooks cleanup and catching past errors.
Is bookkeeping tax-deductible?
Yes! Bookkeeping services are a legitimate business expense.
Want peace of mind with your finances? Let’s get your books in order — and your business on track.