5 Common Bookkeeping Mistakes Small Business Owners Make
Running a small business is rewarding, but managing the finances can be tricky. Many business owners try to handle their own books to save money, but simple errors can lead to costly tax issues or cash flow problems down the road.
Here are five common mistakes to watch out for:
Mixing Personal and Business Finances: Using your business card for personal groceries or your personal card for business software creates a mess that is hard to untangle at tax time.
Throwing Away Receipts: Even small expenses add up. Without receipts, you cannot claim deductions during tax season.
Inconsistent Categorization: Putting an expense under “Office Supplies” one month and “Equipment” the next makes your reports useless for analysis.
Ignoring Bank Reconciliation: If you don’t match your books to your bank statement every month, you might miss double charges or fraud.
Doing It All Yourself When You Are Too Busy: Bookkeeping takes time. If you are rushing through it, you are likely making errors.
If you find yourself making these mistakes often, it might be a sign that you need professional help. Read our guide on When It’s Time to Outsource Your Bookkeeping to see if you are ready for support.