5 Bookkeeping Mistakes That Cost Small Business Owners Thousands



May 17, 2025

If you're a small business owner, keeping your books clean isn't just about being organized—it’s about protecting your profits. In this quick guide, you’ll learn five common bookkeeping mistakes that cost business owners real money—and how to avoid them.

1. Mixing Personal and Business Expenses

Why it hurts: It creates a tax-time headache and makes your financials unclear.

Fix: Open a separate business bank account and only use it for business purchases.

2. Not Tracking Mileage or Receipts

Why it hurts: You’re leaving tax deductions on the table.

Fix: Use a simple app like MileIQ or Google Sheets to log your trips and save digital copies of receipts.

3. Doing Everything Yourself

Why it hurts: DIY bookkeeping can lead to missed entries, late filings, and lost time.

Fix: Delegate your bookkeeping or hire a reliable part-time professional to help.

4. Skipping Monthly Reviews

Why it hurts: Small problems can grow fast when you don’t review your numbers.

Fix: Set a monthly date to review your income, expenses, and accounts—even 15 minutes helps.

5. Not Reconciling Bank Accounts

Why it hurts: You may be overreporting or underreporting income without knowing.


Fix: Reconcile your business bank accounts each month to catch errors early.

Final Tip: Keep It Simple, But Stay Consistent

Bookkeeping doesn’t have to be hard—but ignoring it can cost you.
If you're behind or need help, we’ll clean up your books and keep you tax-ready year-round.

📩 Need support? Book a free 15-minute call  here   to get peace of mind for your business.