Introduction
Accounting isn’t just for tax season—it’s a daily part of running your business. Unfortunately, many small business owners fall into common traps. This post highlights the top 10 accounting mistakes and how tools like FreshBooks can help avoid them.
1. Mixing Personal and Business Finances
Always use a separate business bank account. FreshBooks links directly to your bank, helping you track business-only expenses.
2. Not Tracking Small Expenses
Small purchases add up. Use FreshBooks’ mobile app to scan receipts on the go.
3. Waiting Until Year-End to Reconcile
Reconcile monthly, not yearly. FreshBooks automates this process with bank syncing.
4. Failing to Send Invoices Promptly
Delayed invoicing = delayed income. FreshBooks allows you to set up recurring invoices and reminders.
5. Ignoring Cash Flow
Revenue ≠ profit. Use reports to monitor real cash availability and forecast shortfalls.
6. Not Backing Up Records
FreshBooks stores everything in the cloud with bank-level encryption and auto-backups.
7. Doing Everything Manually
Manual bookkeeping increases errors. Let FreshBooks automate recurring entries and calculations.
8. Not Categorizing Transactions Correctly
Mislabeling expenses affects tax deductions. FreshBooks auto-categorizes based on past data.
9. Forgetting Tax Deductions
Home office, mileage, software—FreshBooks highlights deductible expenses you may overlook.
10. Avoiding Professional Help
FreshBooks lets you easily share your records with an accountant for reviews and filing.
Conclusion
Avoiding these 10 mistakes can save you time, stress, and money. With a powerful tool like FreshBooks, accounting becomes a breeze—not a burden.
