Running a small business already comes with enough challenges, and bookkeeping shouldn’t be one of the things that keeps you up at night. Yet, many business owners make the same simple mistakes that can lead to stress, missed deadlines, cash flow issues, and problems with the ATO. The good news? Most of these mistakes are easy to fix once you know what to look out for.
As a registered BAS Agent, I come across these regularly when working with small businesses. Here are some of the most common bookkeeping mistakes I see, and how you can avoid them.
1. Mixing Personal and Business Finances
Using one bank account for everything might seem convenient, but it quickly becomes confusing. It makes tracking expenses harder, increases the chance of errors, and can cause problems if you’re ever audited.
Tip: Always have a separate business bank account and use it only for business income and expenses.
2. Falling Behind on Bookkeeping
Leaving your bookkeeping until BAS or tax time creates unnecessary pressure and often results in rushed or inaccurate work. Small errors can easily turn into big issues when records are months behind.
Tip: Set aside time weekly or fortnightly to stay on top of your transactions.
3. Not Keeping Proper Records
Receipts, invoices, and bank statements are essential. Missing documentation can mean losing legitimate deductions and struggling to support your figures if the ATO asks questions.
Tip: Use a digital system or accounting software to store and organise your records safely.
4. Incorrectly Categorising Expenses
Placing expenses into the wrong categories can affect your BAS, tax obligations, and financial reports. It may also distort how your business is actually performing.
Tip: If you’re unsure where something belongs, it’s better to ask than guess.
5. Forgetting About Superannuation Obligations
Superannuation isn’t optional, and missing payments or paying late can result in penalties and extra paperwork.
Tip: Schedule super payments and make them part of your regular bookkeeping routine. This is going to be a must as of 1 July 2026 – with “Payday Super” coming into effect.
6. Not Reconciling Bank Accounts
If your bank account isn’t reconciled, you can’t be confident that your records are accurate. Missing or duplicated transactions often hide here.
Tip: Reconcile your bank accounts regularly to ensure everything matches.
7. Ignoring Small Errors
A few dollars here and there may not seem important, but small discrepancies often point to bigger issues underneath.
Tip: Fix errors early before they snowball into larger problems.
8. Trying to Do Everything Yourself
While it’s great to be hands-on, bookkeeping requires time, knowledge, and attention to detail. Many business owners unknowingly spend hours doing something that could be done more efficiently by a professional.
Tip: Outsourcing your bookkeeping can save you time, reduce stress, and give you peace of mind.
9. Not Understanding Your Reports
Your financial reports aren’t just for your accountant. They show how your business is really performing.
Tip: Take time to understand your Profit & Loss and Balance Sheet, or ask your bookkeeper to explain them in plain language.
10. Waiting Until There’s a Problem
Often, bookkeeping help is only sought when something has already gone wrong. At that point, fixing issues is usually more time-consuming and costly.
Tip: Regular bookkeeping support prevents problems before they start.
Final Thought
Good bookkeeping isn’t just about compliance; it’s about clarity, confidence, and control over your business finances. Avoiding these common mistakes can make a huge difference to how smoothly your business runs.
At One For The Books, I help small business owners stay organised, compliant, and stress-free, so they can focus on growing their business instead of worrying about paperwork.
