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5 Common Bookkeeping Mistakes on Small Businesses

Small mistakes such as making a wrong meal or drink for a customer is pretty much understandable. But bookkeeping mistakes will definitely harm your business. These mistakes usually happen in small companies such as coffee shops or food trucks that generally do not have a large number of employees.

Bookkeeping mistakes usually happen when you run your business alone. Marketing, the production process, to bookkeeping is done by you, the owner. At first, you might not feel overwhelmed because you don’t have a lot of customers.

However, as time goes by,  you will grow your business and you will start getting overwhelmed. This is when business owners usually start making mistakes. Here are bookkeeping mistakes that are often done by small entrepreneurs.

Mixing personal and business money

Bookkeeping mistakes that are often done by businessmen are mixing personal money with business money. It is recommended that you avoid doing this even though you have good discipline. Unexpected accidents such as family member got sick or urgent matters can happen anytime and at this moment you usually think of using business money first.

This will certainly disrupt your business’ cash flow. Therefore it is highly recommended to separate your personal and corporate accounts. You also have to be careful if you want to use personal money for the company. You will often forget to record expenses and things will go south afterward.

Manually bookkeeping

Let alone small companies, there are a lot of companies with dozens of employees who still do bookkeeping manually. The Microsoft Excel or Google Sheet spreadsheet is a common tool used to record cash flow of the company.

This manual method has major weaknesses, namely in terms of human error. Some examples that might occur are you forget to pay monthly bills or enter incorrect payments from customers.

At this level, you might think of hiring an accountant to help you minimize human errors in your company’s books. However, are you certain that your accountant met your needs?

Hire an accountant who doesn’t suit your needs

Finding an accountant is actually not difficult. The difficult thing is to find an accountant who understands the ins and outs of your business. This is important because accountants who do not understand your business flow will not be able to give advice about where you can save expenses.

In addition, you also need a trusted accountant. This point is obviously important because it is your accountant who will take care of your business money. You certainly don’t want to hire someone with an unclear background to manage the most important aspects of your business right?

This is what makes it difficult for entrepreneurs to find accountant staff. And when we find the right person, we often have to spend a lot on salary.

Using accounting software incorrectly

For those who had difficulties finding the right accountant generally switch to accounting software. The reason is simple. Accounting software is reliable, dependable, and automates all things related to company finance.

But there are also some people who are still having trouble using accounting software because they are accustomed to manual bookkeeping for years. When the software is used incorrectly, instead of helping you, the system actually turns against you.

Therefore, consider using accounting software with good customer service from its developer. Without it, it’s useless to spend a lot of money to buy accounting software but you can’t use it in the end.


Not only bookkeeping, we often procrastinate because we think we still have plenty of time to do other things. It was only when the deadline came closer that we just started working.

This is a bad habit that has to let go as soon as possible. Familiarize yourself to do your job before the deadline comes. This way you can put more focus on your work and giving the best results compared to hurrying to finish work which usually leads to mistakes.

It’s the same as bookkeeping. Do not delay working on your bookkeeping until the very end of the deadline. Panic usually accompanies those who are working before the deadline, and panic is susceptible to mistakes. As we all know, mistakes in bookkeeping are fatal.


For business owners, learning from mistakes is important. The important thing is not to make the same mistakes over and over again. Take immediate action to avoid this problem, whether it’s hiring accountants that you can trust or bookkeeping automation with accounting software.

For other interesting readings about business and technological developments in the country, click the following link.

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