Avoiding Financial Chaos: 5 Common Bookkeeping Mistakes and How to Steer Clear of Them

As a small business owner, you probably wear many hats, one of which is bookkeeping. It can be a daunting task, especially if you don't have a background in accounting. However, bookkeeping mistakes can be costly, and even lead to financial chaos. In this blog, we'll discuss five common bookkeeping mistakes and provide tips on how to avoid them.

At Catching Numbers Inc, we specialize in providing bookkeeping services to small businesses. Contact us today to learn more about how we can help you avoid these common mistakes and stay on top of your finances.

1. Not keeping receipts and records:

One of the most common bookkeeping mistakes is not keeping receipts and records. This can lead to inaccurate financial reports, missed deductions, and even legal trouble if you're audited. To avoid this, make sure to keep all receipts and records organized and up to date. You can use cloud-based software to keep everything in one place and easily accessible. At "Catching Numbers Inc", we can help you set up a system for organizing your receipts and records, and ensure that your financial reports are accurate and up to date.

2. Mixing personal and business finances:

Mixing personal and business finances is a common mistake that can make bookkeeping a nightmare. This can lead to a lack of clarity on business expenses, missed deductions, and a distorted view of your business's financial health. To avoid this, open a separate bank account for your business, use a separate credit card for business expenses, and avoid using personal funds for business expenses. 

3. Not reconciling accounts regularly:

Failing to reconcile your accounts regularly is another common bookkeeping mistake. Reconciliation ensures that your records match your bank statements and helps you identify discrepancies or errors. To avoid this, reconcile your accounts on a monthly basis and investigate any discrepancies as soon as possible.

4. Forgetting to record all expenses:

It's easy to forget to record expenses, especially small ones like coffee or parking fees. However, these small expenses can add up and impact your financial reports. To avoid this, keep a log of all expenses, no matter how small. You can also use a mobile app to track expenses on the go.

5. Not categorizing expenses correctly:

Categorizing expenses incorrectly can lead to inaccurate financial reports and missed deductions. For example, if you categorize a business expense as personal, you may miss out on a deduction that could save you money. To avoid this, make sure to categorize expenses correctly and consistently. You can also use software that can learn from your categorization habits to automate the process.


Bookkeeping may not be the most exciting part of running a business, but it's essential for your financial health. By avoiding these common bookkeeping mistakes, you can ensure that your records are accurate and up to date, and have a better understanding of your business's financial health.

At Catching Numbers Inc, we specialize in providing bookkeeping services to small businesses. Contact us today to learn more about how we can help you avoid these common mistakes and stay on top of your finances. Also, be sure to check out our blog post on Why Cloud is our Preferred Method for more information on how to streamline your bookkeeping processes and improve your financial reporting.

More on this topic:

1. "10 Common Bookkeeping Mistakes to Avoid for Small Business Owners": A blog post by Bench that provides additional insight into common bookkeeping mistakes and how to avoid them. [https://bench.co/blog/bookkeeping/common-bookkeeping-mistakes/]
2. "5 Bookkeeping Best Practices for Startups and Small Businesses": A blog post by NerdWallet that provides practical tips for small business owners looking to manage their own bookkeeping. [https://www.nerdwallet.com/article/small-business/bookkeeping-best-practices-for-startups-and-small-businesses]www.nerdwallet.com/article/small-business/bookkeeping-best-practices-for-startups-and-small-businesses