The Most Common Bookkeeping Mistakes Small Business Owners Make (and How to Fix Them)
When it comes to running a business, you're wearing all the hats—CEO, content creator, customer service rep, and... bookkeeper? If that last one made you cringe a little, you're not alone.
Bookkeeping doesn’t have to feel confusing or overwhelming, but far too often, it gets pushed to the bottom of the to-do list—until tax season rolls around or cash flow starts getting tight.
After working with hundreds of women business owners over the years, I’ve seen the same mistakes pop up again and again. So let’s take a look at the most common bookkeeping pitfalls—and, more importantly, how to fix them.
1. Mixing Personal and Business Finances
The Mistake:
Using the same bank account or credit card for both personal and business expenses.
Why It Matters:
This creates a messy paper trail and makes it harder to track profitability, calculate taxes, or take your business seriously.
The Fix:
Open separate business checking and credit card accounts—even if you’re just starting out. This one shift brings instant clarity to your finances and simplifies everything come tax time.
2. Ignoring Bookkeeping Until the End of the Year
The Mistake:
Waiting until tax season to “catch up” on an entire year’s worth of transactions.
Why It Matters:
It leads to missed deductions, inaccurate reports, and stress (so much stress).
The Fix:
Create a weekly or monthly bookkeeping habit. I teach a system that helps business owners complete their books in 20 minutes or less per week. Yes, really. (And if you're not sure what those steps should look like, keep reading—I’ve got a free checklist coming up.)
3. Not Categorizing Expenses Correctly
The Mistake:
Guessing where expenses go or lumping everything under “Miscellaneous.”
Why It Matters:
Misclassified expenses can distort your financial reports and lead to trouble with the IRS or your tax pro.
The Fix:
Use clear, consistent categories that align with your business activity. If you’re unsure how to label something, ask your accountant—or join one of my trainings where we walk through common categories together.
4. Not Reconciling Accounts
The Mistake:
Assuming that your bookkeeping software is automatically correct because it connects to your bank.
Why It Matters:
Bank feeds can miss or duplicate transactions. If you’re not reconciling your accounts regularly, your financial reports could be way off.
The Fix:
Make reconciliation a monthly habit. It ensures your numbers are accurate and alerts you to any bank errors or missed income.
5. Not Understanding Financial Reports
The Mistake:
Avoiding your Profit & Loss or Balance Sheet because they feel confusing or irrelevant.
Why It Matters:
Without understanding your numbers, you’re flying blind. It’s hard to know if your business is truly profitable—or where to make smart changes.
The Fix:
Start small. Learn what your P&L tells you about your revenue, expenses, and bottom line. I break this down inside my courses in plain English, no accounting degree required.
6. Doing Everything Yourself for Too Long
The Mistake:
Trying to manage your books, taxes, and money strategy solo—on top of everything else in your business.
Why It Matters:
Bookkeeping isn’t just a chore; it’s the foundation of your business decisions. And without expert support, you might be leaving money (and peace of mind) on the table.
The Fix:
Even if you’re not ready to outsource completely, get support in the form of coaching, templates, or systems that simplify your process. (That’s exactly what I do inside The CFO Mindset programs.)
Next Step: Grab My Free Monthly Bookkeeping Checklist
Want a simple system to stay on top of your books in less than 20 minutes a week?
📥 [Download My Free Monthly Checklist for Stress-Free Bookkeeping]
It includes one version for QuickBooks Online users and another for spreadsheet lovers—so you can finally feel confident and clear, no matter how you track your numbers.
Bookkeeping doesn’t have to be hard. With the right systems, support, and mindset, your money can become a powerful tool—not a source of stress.
And remember: every CEO was once a beginner. Start where you are, and keep moving forward.
