Common Bookkeeping Mistakes Small Business Owners Make (And How to Avoid Them)
Bookkeeping is one of the most essential-but often overlooked-parts of running a successful small business. While many business owners try to manage the books themselves, even small errors can lead to tax issues, cash flow problems, or missed growth opportunities.
Download Our Free Brochure →Here are 10 common bookkeeping mistakes and how to avoid them, so your financial records stay clean and your business stays compliant.
1. Not Separating Personal and Business Finances
Mixing accounts is a fast track to confusion, IRS red flags, and inaccurate reporting.
Fix: Open a dedicated business checking account and use it exclusively.
2. Forgetting to Record Small Transactions
Every expense matters-especially when they add up over time.
Fix: Use cloud bookkeeping tools or hire a bookkeeping partner to keep everything documented.
3. Not Reconciling Bank Statements Monthly
If your books and bank accounts don’t match, you’ll miss errors and fraud.
Fix: Reconcile monthly or use an outsourced service like Remote Books Online to do it for you.
4. Poor Record-Keeping for Deductions
No documentation? No deduction.
Download Our Free Brochure →Fix: Keep digital receipts and categorize expenses promptly.
5. Delaying Data Entry
Procrastination leads to confusion and backtracking.
Fix: Stay consistent-or better yet, let a dedicated bookkeeper handle it weekly.
6. Overlooking Accounts Receivable
Many businesses fail to follow up on unpaid invoices.
Fix: Set up reminders or use automated invoicing software.
7. DIY Bookkeeping Without Training
Lack of training can lead to costly errors.
Fix: Hire a certified bookkeeper or consider an affordable monthly bookkeeping plan.
8. Not Backing Up Data
A crash or cyberattack can wipe everything out.
Fix: Use cloud-based systems or ensure regular backups.
9. Ignoring Financial Reports
Not reviewing your P&L or cash flow report means missed trends.
Fix: Schedule monthly financial reviews-your bookkeeping provider should include this.
10. Waiting Until Tax Time
Catching up during tax season is stressful and risky.
Fix: Bookkeeping should be done monthly, not yearly.
Use Case
A restaurant owner in Texas came to us 6 months behind on books. Within two weeks, Remote Books Online cleaned up their books, reconciled their bank statements, and implemented monthly reporting-saving them from IRS penalties and giving them peace of mind.
FAQs
What’s the most common bookkeeping mistake?
Mixing personal and business expenses is one of the most frequent and damaging mistakes.
How can I catch up on months of missed bookkeeping?
Remote Books Online offers Catch-Up Bookkeeping to clean your books and bring them current fast.
How often should I do my bookkeeping?
At least monthly. Waiting until tax time is a costly mistake.
Can you help if I don’t have any records?
Yes, we specialize in helping businesses recreate financials with minimal input.
Avoid These Mistakes-Get Your Books in Order Today
Let Remote Books Online help you fix past errors and keep your books clean moving forward.
Schedule your free consultation or call us at 1-800-583-0148
If you’re behind on your books, our catch-up bookkeeping services can help you get current fast-no stress, no mess.
Stay organized and tax-ready year-round with our flat-rate monthly bookkeeping services.
Looking to scale? Learn how smart bookkeeping and financial reporting give you the insights needed to grow your business with confidence.
