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The 5 most Common Mistakes Small Business Owners Make

Running a small business is hard enough, don’t let bookkeeping errors cost you time, money, or your peace of mind.

Here are the 5 most common mistakes small business owners make with their books—and how you can avoid them.

1. Not Separating Personal and Business Finances

Why it’s a problem: Mixing accounts causes confusion, inaccurate reporting, and potential legal trouble during audits.

Solution: Open a separate business bank account and only use it for business transactions.

2. DIY Bookkeeping Without Proper Knowledge

Why it’s a problem: QuickBooks might seem easy—but misclassifying expenses, skipping reconciliations, or missing entries can lead to wrong tax filings.

Solution: Hire a certified bookkeeper or at least get monthly checkups.

3. Falling Behind on Transaction Recording

Why it’s a problem: Delays lead to forgotten expenses, missed deductions, and late financial reports.

Solution: Record transactions weekly or outsource to stay up-to-date effortlessly.

4. Skipping Monthly Reconciliations

Why it’s a problem: Bank errors, duplicate charges, or fraud can go unnoticed.

Solution: Reconcile every account (bank, credit card, PayPal, etc.) monthly—no exceptions.

5. Ignoring Financial Reports

Why it’s a problem: Without reviewing your Profit & Loss and Balance Sheet regularly, you can’t measure growth or spot financial red flags.

Solution: Request monthly reports from your bookkeeper and review them with guidance.

✅ Final Thoughts:

Fixing these mistakes can mean the difference between staying afloat and growing strong.

📞 Need help? At OSR Bookkeeping Services, we specialize in remote bookkeeping for small businesses—monthly reports, reconciliations, and reliable support that saves you stress.

👉 Schedule your free consult today.

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