7 bookkeeping mistakes
Top 7 Bookkeeping Mistakes Small Businesses Make (and How to Avoid Them)
Running a small business is exciting, but managing the financial side of things can feel overwhelming. Bookkeeping mistakes are more common than many business owners realize—and they can cost time, money, and peace of mind. The good news? Most of these mistakes are avoidable with the right systems and support in place.
At Glass & Associates, we’ve worked with countless small businesses since 2018, helping them streamline bookkeeping, payroll, and accounting so they can focus on growth. Below, we break down the seven most common bookkeeping mistakes and how to avoid them.
1. Mixing Personal and Business Expenses
It’s tempting to use the same bank account for both personal and business expenses, but doing so makes it difficult to track cash flow and prepare accurate financial reports.
How to avoid it: Open a dedicated business bank account and credit card. Keep all personal expenses separate—it makes taxes easier and gives you a clearer picture of business health.
2. Poor Recordkeeping
Losing receipts or failing to document transactions can lead to errors, missed deductions, or even IRS issues.
How to avoid it: Use a cloud-based accounting system or apps that allow you to snap photos of receipts and automatically categorize expenses. Consistency is key.
3. Missing Tax Deadlines
Filing late or forgetting quarterly tax payments can result in costly penalties and interest.
How to avoid it: Create a tax calendar with important deadlines, or better yet, work with a professional accounting partner who will ensure you stay compliant.
4. Payroll Errors
From misclassifying employees to miscalculating overtime, payroll mistakes can be expensive and hurt employee trust.
How to avoid it: Automate payroll processing and make sure you’re up-to-date on state and federal regulations. Partnering with a payroll services provider (like Glass & Associates) ensures accuracy and compliance.
5. Not Reconciling Accounts Regularly
If your bank statements and books don’t match, you may not notice errors or even fraud until it’s too late.
How to avoid it: Reconcile your accounts at least once a month. This ensures accuracy and helps you catch discrepancies early.
6. Trying to DIY Without Expertise
Many small business owners try to handle everything themselves—but bookkeeping is one area where mistakes can cost more than professional help ever would.
How to avoid it: Know when to delegate. Bringing in experienced bookkeeping and accounting professionals frees you up to focus on running your business while ensuring your books are accurate.
7. Not Planning for Growth
Bookkeeping isn’t just about keeping the lights on—it’s about preparing for the future. Without a clear picture of cash flow and profitability, businesses may miss opportunities for expansion.
How to avoid it: Use financial reports and forecasts to guide decisions. A trusted advisor can help you move beyond day-to-day bookkeeping and toward long-term planning.
Bookkeeping mistakes are common, but they don’t have to hold your business back. By staying organized, consistent, and proactive—or by partnering with a trusted firm—you can protect your business and set it up for lasting success.
At Glass & Associates, we specialize in bookkeeping, accounting, payroll, and business enhancement services that are both client-focused and integrity-based. Whether you need help cleaning up your books or building a plan for growth, our team is here to support you.
👉 Ready to simplify your bookkeeping? Contact us today to schedule a consultation.
