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The 3 Biggest Bookkeeping Mistakes Small Business Owners Make and How to Avoid Them

Updated: Jan 24

Attempting to track your finances for the first time leaves many business owners feeling like Alice in Alice in Wonderland: stuck and confused in a world they do not understand. We get that bookkeeping for your small business can be a struggle! To better help you navigate your time in ‘Wonderland’ we’ve listed the 3 biggest bookkeeping mistakes that small business owners make and how to avoid them down below.

1. Lack of Time

We understand that running a small business takes huge amounts of time and effort. That being said, you may not always have the time to keep accurate records, reconcile bank accounts, and prepare financial reports. Neglecting these tasks can make bookkeeping harder and longer to complete.

2. Lack of Understanding

Let’s face it, some of us just aren’t good with finances. Unless you’re already a bookkeeping expert, many small business owners lack the financial knowledge necessary to properly manage their bookkeeping. (Do you know what account to code your expenses to?) This can lead to complications down the road and can make bookkeeping that much more difficult.

3. Compliance Issues

Bookkeeping plays a critical role in ensuring compliance, but many small business owners struggle to keep up with the changing regulations and requirements. Compliance issues can be costly and in the worst cases, can result in fines. It’s imperative that you and your business comply with the rules of your region.

We won’t lie to you, even with all of these common mistakes in mind, bookkeeping can still be a highly complex process. One of the best ways to solve any of these financial issues is to outsource your bookkeeping. At STEPS, we have bookkeeping professionals who would be happy to help you! Follow the link to our services page to learn more or reach out on our website’s contact page. A bookkeeping stress-free life is just one click away.

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