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The Biggest Bookkeeping Mistakes That Could Cost Your Business Thousands

Writer's picture: Markus ShobeMarkus Shobe

Running a business is hard enough without making costly bookkeeping mistakes. Trust me, I’ve seen it all. And the worst part? These mistakes don’t just hurt your books—they can drain your bank account, trigger IRS audits, and even shut down your business.

Let’s break down the most common bookkeeping mistakes and how to avoid them.

1️⃣ Mixing Personal and Business Finances

You wouldn’t mix your personal groceries with office supplies on the same receipt, right? So why use the same bank account for business and personal expenses?

👉 Why it’s a problem: It makes tracking expenses a nightmare, messes up tax deductions, and raises red flags with the IRS.

Fix it: Open a dedicated business bank account and credit card. Keep things separate.

2️⃣ Not Keeping Up with Receipts

Ever tried explaining to the IRS why you spent $500 at Office Depot two years ago? Without receipts, that’s a problem.

👉 Why it’s a problem: Missing receipts mean lost deductions and possible IRS trouble.

Fix it: Use a receipt-tracking app like Expensify or QuickBooks. Snap a pic and store it digitally.

3️⃣ Ignoring Cash Flow

Profit looks great on paper, but if your bank account is empty, that’s a problem.

👉 Why it’s a problem: If you don’t track cash flow, you might overspend, miss payroll, or struggle to pay bills.

Fix it: Review cash flow weekly. Know what’s coming in and going out. If numbers look tight, adjust spending.

4️⃣ Forgetting to Reconcile Bank Accounts

Would you drive a car without checking the gas gauge? That’s what running a business without reconciling accounts feels like.

👉 Why it’s a problem: Errors, fraud, and duplicate transactions can slip through unnoticed.

Fix it: Reconcile bank statements every month. Better yet, let an Indianapolis bookkeeper handle it for you.

5️⃣ Not Hiring a Professional

Thinking DIY bookkeeping saves money? Think again.

👉 Why it’s a problem: Errors, missed deductions, and IRS penalties can cost way more than hiring a bookkeeper.

Fix it: If bookkeeping takes you hours or stresses you out, it’s time to call in a pro. A good Indianapolis bookkeeper will keep your books clean, save you money, and help you avoid costly mistakes.

Final Thoughts 💡

Bookkeeping mistakes can add up fast. But with the right habits (and maybe a great bookkeeper 😉), you can keep your business finances on track and avoid throwing money down the drain.

Need help with your books? Let’s chat! A trusted Indianapolis bookkeeper can save you time, stress, and money. Reach out today!

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