The Bookkeeping Mistakes Everyone Makes
I'm all for DIYing your books if that works for you. But if you're going to go the DIY route, let's make sure you're setting yourself up for success.
I see the same patterns come up again and again with DIY bookkeepers, and honestly? They might not be the mistakes you'd expect. The good news is they're all totally fixable, and once you know what to look for, they're pretty easy to avoid.
Before we dive in, I want to be super clear: there’s absolutely nothing wrong with DIY bookkeeping, and if you've made any of these mistakes, it doesn't reflect poorly on you or your business skills. You’re not alone, these are things we all learn at one point or another.
Skipping Reconciliations
Here's what reconciliation actually is: it's your chance to double-check that what you recorded in your books matches what actually happened in your bank account. It’s proofreading for numbers.
Many business owners skip this step because it sounds challenging or time-consuming (spoiler: it’s not). But here's the thing—if you have solid processes in place, reconciling takes minutes, not hours. And if your processes need work? Monthly reconciliation will help you spot those patterns early, before they turn into bigger headaches.
When you skip reconciliation, you might be making business decisions based on numbers that aren't quite right. And nobody needs that kind of stress.
Missing Payment Processing Fees
Stripe, PayPal, Square, Moneris, and Helcim (my fav!)… they're all taking their cut, but they don't all handle it the same way. Some deduct fees before the money hits your account, others deposit everything and then charge fees separately.
It's worth knowing which camp your processor falls into and making sure you're tracking those fees properly. If you're not, you might be overstating your income and missing out on legitimate business deductions. Plus, keeping an eye on these fees helps you catch any surprise charges before they add up.
The Canada Revenue Agency allows payment processing fees as legitimate business deductions, so tracking them properly can reduce your tax burden.
Forgetting About Tax Money
Ah, the classic "oh no, tax season" moment. If you've been there, you're definitely not alone. It's one of those mistakes that teaches you real quick why setting aside tax money matters, and one that is rarely made twice.
A simple approach: put a percentage of your income into a separate high-yield savings account every month. Out of sight, out of mind, but there when you need it. The exact percentage depends on your situation, so it's worth chatting with your tax preparer to figure out what makes sense for you.
Setting aside tax funds is honestly self care for future you. You’ll be so grateful come April. Trust me.
Accidentally Overstating Income
This one comes in a few different flavours (not the fun kind, sadly): recording the same invoice twice, not properly accounting for refunds, or my personal favourite - counting birthday money from grandma as business income because it accidentally got deposited into your business account. (Yes, I've actually seen this happen!)
These little data entry hiccups might make your business look more profitable on paper, which feels great until you realize you're making decisions based on numbers that aren't quite accurate. Plus, nobody wants to overpay taxes on income they didn't actually earn. Hard pass.
Mixing Business and Personal Expenses
Look, we've all grabbed the wrong card at checkout. It happens! But when you can't remember whether that IKEA run was for business stuff or personal stuff, things get complicated fast.
Or worse - you put a big business expense on your personal card and forget to record it, missing out on a legitimate deduction. Or you accidentally claim your Dyson Airwrap as a business expense because it ended up on the wrong card (seems like no biggie on the surface until an audit… then not so much).
Separate accounts aren't just a "nice to have", they make your bookkeeping so much cleaner and your life so much easier. If you're already in the thick of mixed expenses, don't panic. There are absolutely ways to sort it out, but keeping things separate going forward will save you major headaches.
Moral of the Story?
All of these mistakes are totally normal and completely fixable. Also, systems matter.
Catching these patterns early makes everything easier down the road, but if you’re suspecting some of these errors are living in your books as we speak, don’t stress. Everything is figureoutable.
Good bookkeeping is having systems that work for you and catching little issues before they become big ones. If you need help setting up those systems or untangling any messes? That's exactly what I'm here for.
Want help creating DIY processes that actually work for your business? Let's chat about setting you up for success from the start.
