Bookkeeping Mistakes to Avoid
No matter how many people warned you, nothing quite prepares you for how much admin really goes into running your own business. You wear all the hats—CEO, customer service, marketing, and yes… the bookkeeper too.
It’s not just about sending invoices and paying bills. There’s tracking, reconciling, coding, GST, tax returns… and somehow remembering what that $47 was for back in February. It’s a lot. And even when you’re mostly on top of it, it only takes one big job or a couple of chaotic weeks for things to snowball. That’s when the shortcuts creep in—and those shortcuts can quietly chip away at your business foundation.
Let’s walk through a few of the most common mistakes new (and even seasoned!) business owners make, and how to avoid them:
Mixing personal and business finances - It might feel easier at the start, but trust us—it’s not worth the hassle. Keep separate bank accounts from day one to save yourself confusion, messy records, and tax-time panic.
Not reconciling your bank regularly - Reconciliation isn’t just ticking boxes—it’s your way of catching missing income, duplicated transactions, or incorrect coding. Make it a habit (weekly is ideal!) and you’ll stay in control.
Misclassifying expenses - Putting everything under “general” or “office expenses”? That’s a red flag. Take time to understand how your expenses are tracked so your reporting reflects the real story. It helps when you need funding, support, or to understand your cash flow.
Sending late invoices (or forgetting to follow up) - Cash flow starts with invoicing. The sooner you send it, the sooner you get paid. Use software like Xero to automate reminders and take the awkwardness out of chasing payments.
Ignoring the little stuff (like petty cash) - Yes, even that $5 coffee during a client meeting matters. Recording your small spends builds a full picture of your costs—and those “little” things add up fast.
Getting GST wrong (or forgetting about it entirely) - If you’re GST registered, accuracy matters. Know what you can claim, how to report it, and when it’s due. Mistakes here can be expensive, so don’t leave it to guesswork.
Trying to do it all manually - There’s no gold star for making things harder than they need to be. Accounting software like Xero or even Hnry (for sole traders) can save you hours and reduce the risk of errors. Let the tools do the heavy lifting.
No backups = big risk - Whether it’s cloud-based software or a spreadsheet, always back up your data. Tech issues happen, and having a Plan B means one bad day won’t cost you everything.
Staying in the dark about tax changes - Tax laws shift. Stay informed or work with someone who is—like an accountant or bookkeeper who knows your industry. It’s worth it for peace of mind and avoiding unexpected bills.
The bottom line? - You don’t need to be perfect. But building simple, consistent habits now will save you stress (and money) later. Think of your books as a tool, not a chore—because good bookkeeping doesn’t just keep the taxman happy. It gives you the clarity and confidence to run your business like a boss.
And hey, if you’ve let it slide for a while? That’s okay too. You can always reset.
Start small, get support when you need it, and keep moving forward.
Assessing these factors can help you determine whether it's time to hire a bookkeeper to ensure your financial health and support your business growth.
By dedicating some time to familiarise yourself with these tools, you can maintain accurate financial records, ensuring a clear picture of your financial health without the need for professional bookkeeping services.
At Ako Cash Flow, we’re not just bookkeepers—we’re your financial empowerment partners. Our mission is to give you the confidence and skills to manage your own books with ease. With our tailored tools and expert guidance, you’ll learn how to track income and expenses, master cash flow, and make smart financial decisions that support your goals. We believe that financial independence is key to long-term success. That’s why our approach focuses on education and support, enabling you to take control of your personal or business finances and build a stronger financial future. Let's empower your journey together!
Running a business comes with a million moving parts—but staying organised doesn’t have to be a struggle. Our Monthly Business Checklist is designed to help you build a structured routine that keeps your finances in check, so nothing gets missed.
✔ Know exactly what needs to be done – No more guesswork or last-minute scrambles
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This simple yet powerful checklist is your go-to tool for maintaining clarity, efficiency, and accountability in your business.
Download it now and take charge of your monthly financial routine!
