Top 5 Bookkeeping Mistakes Small Business Owners Make
Running a small business means wearing a lot of hats — but bookkeeping shouldn’t be one that causes costly mistakes. At Dishion & Associates, we often see small business owners unintentionally create financial headaches that could easily be avoided with the right processes in place. Below are the five most common bookkeeping mistakes and how to avoid them.
1. Mixing Personal and Business Finances
This is the most common and most damaging mistake. Mixing expenses makes it difficult to track true profitability, complicates tax filing, and increases your risk during an audit.
✅ Fix it: Open a dedicated business bank account and credit card. Keep everything separate.
2. Falling Behind on Data Entry
When you’re focused on sales, it’s easy to let receipts pile up. But waiting months to input transactions leads to forgotten expenses, errors, and rushed tax prep.
✅ Fix it: Set aside time each week — or outsource it — to keep your books up-to-date.
3. Not Reconciling Bank Accounts
Reconciling means comparing your books to your bank statements to catch missing or duplicate entries. Without it, you may miss fraud, errors, or cash flow issues.
✅ Fix it: Reconcile accounts monthly. Accounting software like QuickBooks can help automate this.
4. Misclassifying Expenses
Putting transactions in the wrong category can distort your financial reports, lead to missed deductions, and raise red flags with the IRS.
✅ Fix it: Use a consistent chart of accounts. Not sure where something belongs? Ask your accountant.
5. DIY Bookkeeping Without Oversight
Many business owners start with spreadsheets or do-it-yourself software — but as your business grows, so does the complexity of your finances.
✅ Fix it: Have a professional review your books at least quarterly — or consider monthly support.
Need help with your bookkeeping?
Schedule a consultation and let Dishion & Associates take bookkeeping off your plate. Book your consult here.
