Good bookkeeping is the backbone of every successful business. It helps you track your income and expenses, stay compliant with tax laws, and make smart financial decisions. But for many small business owners and entrepreneurs, bookkeeping isn’t just a task — it’s a challenge.
At Numberra, we’ve seen the same avoidable mistakes crop up time and time again. Whether you’re new to business or just trying to keep your books in better shape this year, here are 5 common bookkeeping mistakes to avoid — and what to do instead.
1. Mixing Personal and Business Expenses
Why it’s a problem:
When you use one account or credit card for both personal and business spending, it creates a messy paper trail that’s hard to sort at tax time. It also increases your risk during a CRA review or audit.
What to do instead:
Open a dedicated business bank account and credit card. Keep personal purchases strictly separate. It makes reconciling and reporting far easier — and cleaner.
2. Not Reconciling Accounts Regularly
Why it’s a problem:
If your bank statements don’t match your bookkeeping records, it could signal missing transactions, duplicate entries, or fraud.
What to do instead:
Reconcile your bank and credit card statements at least once a month. Spot errors early and ensure your records reflect reality.
3. Letting Receipts Pile Up
Why it’s a problem:
Lost or faded receipts mean you might miss out on legitimate tax deductions. Plus, in the event of a CRA review, you’ll need to provide proof of expenses.
What to do instead:
Use a digital app or accounting software to scan and organize receipts as you go. Set a reminder to upload them weekly — it’s far less painful than doing it all at once.
4. Waiting Too Long to Enter Transactions
Why it’s a problem:
Delaying your bookkeeping creates inaccuracies and unnecessary stress. It also makes it harder to remember what that $127.45 payment was for three months ago.
What to do instead:
Keep up with your bookkeeping weekly or bi-weekly. Staying current helps you make informed decisions and avoids a year-end scramble.
5. Not Backing Up Your Financial Data
Why it’s a problem:
Hard drives crash. Files get corrupted. If your records are only saved in one place, you’re at risk of losing everything.
What to do instead:
Use cloud-based accounting software or make regular encrypted backups of your data. It’s a simple way to protect your business from unnecessary stress or even financial penalties.
Bonus Tip: Don’t Be Afraid to Ask for Help
DIY bookkeeping might seem like a money-saver, but errors can end up costing you more in penalties, missed deductions, or lost time. A professional bookkeeper can give you peace of mind, better insights, and space to focus on running your business.
Need Support? We’ve Got You.
At Numberra, we help small business owners and entrepreneurs stay on top of their books with simple, empowering accounting support. Whether you’re just starting out or ready to grow, our team is here to make things easier.
Let’s chat – book a consult today!
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