Unpopular opinion, your bookkeeping can make or break your business.
Bookkeeping is where you learn you don’t have a sales problem, you have a collection of invoices problem.
Bookkeeping is where you learn you don’t have a sales problem, you have a cost of goods problem.
So, let’s save you some stress and go over the top 5 bookkeeping mistakes I see small business owners make all the time.
1. Mixing Personal and Business Finances
You might think you’re keeping it all straight in your head, but your bank account is screaming for boundaries. When you pay for groceries with your business debit card or buy office supplies with your personal one, your books become a jumbled mess.
This is mistake #1 for a reason. Not only does it make profit margins harder, it can put you at risk if you’re ever audited. Set up separate accounts, use them properly, and give your money the structure it deserves.
2. Not Reconciling Accounts Regularly
Reconciling is like flossing. You know you should do it, it doesn’t take long, but somehow it ends up at the bottom of your to-do list.
Reconciling your bank and credit card accounts helps you catch errors, fraud, and weird charges you might miss. If you’re not doing this monthly, you’re operating in the dark. It’s time to turn on the lights!
3. Falling Behind on Data Entry
You wouldn’t ignore a pile of bills sitting on your desk, right? (Or maybe you would, no judgment.) But when you don’t enter your expenses and income regularly, your books stop reflecting reality.
Outdated books = going with your gut. Going with your gut = making decisions that have a negative impact on your business, despite your best intentions.. Keep your data current, and you’ll always know where your money is going, and more importantly, where it should be going.
4. DIYing for Too Long
There’s a season for DIY, and then there’s a season for delegation. If you’re making over six figures, it is time to call in a pro. It is time for you to spend more time generating revenue than doing admin work..
Many business owners wait until they’re in a panic (usually around tax time) to realize they’re in over their head. While we will bail you out of a meltdown, hiring a good bookkeeper will save you time, money, and a whole lot of stress.
5. Not Reviewing Reports
If you’re avoiding your profit and loss statement, that’s ok. I want to show you how awesome your budget vs actuals report is instead!
Your financial reports are your business’s GPS. They tell you where you are, what’s working, what’s not, and where you’re headed. Reviewing them regularly helps you make smart, data-informed decisions.
Let My CFO Help You Clean It Up
At My CFO, we help business owners ditch the confusion and take charge of their books. Whether you’re behind on data entry, unsure if your numbers are even accurate, or just tired of going it alone, we’ve got you. Bookkeeping isn’t just something we do, it’s how we empower you to grow confidently, calmly, and profitably.
Because at the end of the day, profit isn’t an accident, it’s a plan. And cash flow isn’t luck, it’s strategy.
