5 Bookkeeping Mistakes Small Businesses Make

Bookkeeping can feel like a chore, but mistakes can cost you time, money, or even an audit. At Shine FinOps, we’ve helped countless small businesses clean up their books. Here are five common pitfalls—and how to avoid them.

1. Mixing Personal and Business Finances: Using one bank account for both leads to tax headaches.

   Fix: Open a separate business account. It’s simple and keeps things clear.

2. Skipping Regular Updates: Letting receipts pile up creates chaos.

   Fix: Set aside 15 minutes weekly to log transactions. Use apps like QuickBooks for speed.

3. Ignoring Small Expenses: That $5 coffee might seem minor, but untracked expenses add up.

   Fix: Track everything—use a receipt scanner app.

4. Not Reconciling Accounts: Mismatches between your books and bank can hide errors.

   Fix: Reconcile monthly to catch discrepancies early.

5. DIY Without a Plan: Bookkeeping isn’t intuitive for everyone.

   Fix: Follow a guide (like ours!) or hire a pro to save stress.

Shine FinOps Tip: Small changes now prevent big problems later. Start with one fix this week.