Running a small business means juggling a lot—customers, products, emails, late-night ideas scribbled on napkins. Bookkeeping doesn’t always make the “most exciting” list, but skipping it can cause bigger problems later. Here are five common mistakes we see (and how to dodge them).
1. Mixing Personal and Business Finances
Swiping the same card for office supplies and your morning latte? That’s a recipe for confusion. When business and personal money get tangled, it’s nearly impossible to track expenses correctly—and the ripple effect can lead to messy reports, tax troubles, and even audits. The fix: keep them separate. Your business deserves its own account.
2. Putting Off Bookkeeping Tasks
It’s easy to think, “I’ll catch up on the books later.” The problem? “Later” usually turns into a mountain of invoices and receipts. If you’re DIY-ing your books, block out time on your calendar—non-negotiable—to update them. If you’re working with a bookkeeper, hand over information promptly so they can keep things on track. A little consistency now makes tax season much less painful (and you’ll thank yourself later).
3. Not Keeping Receipts
Receipts aren’t just scraps of paper—they’re proof that you actually spent that money on business. Without them, you lose out on deductions and accurate records. Create a simple filing system that works for you, digital or paper. Just…maybe not the classic shoebox method.
4. Forgetting to Back Up Your Data
We’ve all been there: a computer dies, and suddenly all those files are gone. Family photos are heartbreaking to lose; financial data is a whole new level of stress. Even if you have paper copies, re-entering everything is no fun. Save yourself the headache—set up a regular backup. Cloud storage makes it easy.
5. Skipping Financial Statement Reviews
Financial statements may not be the most thrilling read, but they’re like a GPS for your business. They show you where you are and help you plan where you’re going. Ignoring them is like driving blind. If the numbers don’t make sense, that’s okay—ask your bookkeeper or accountant to walk you through it.
The Bottom Line
Bookkeeping isn’t just about numbers—it’s about clarity and confidence in your business. Avoiding these common pitfalls can save you time, stress, and maybe even a few gray hairs.
Wallach & Wallach 