The 7 Most Common Bookkeeping Errors (and How to Fix Them Quickly)

Even the most organized business owners end up making bookkeeping mistakes—usually because they’re juggling customers, marketing, operations, payments, family life, and everything else (hurricanes, anyone?) The good news? Almost all bookkeeping problems fall into just a handful of predictable categories.

If you can learn to spot these seven common errors, you can correct them fast and keep your books running like a well-oiled machine.

1. Misclassified Expenses

This is the #1 mistake across all small businesses.
Transactions get coded incorrectly because:

• you’re rushing

• categories are confusing

• you forget what a charge was for

• your software “guesses” wrong

Why it matters:

Misclassified expenses skew your Profit & Loss report and can create tax problems.

Quick Fix:

• Review categories monthly

• Keep a simple “cheat sheet” of your top 10 categories

• Create rules in QuickBooks to automate recurring transactions

2. Missing Receipts or Documentation

Receipts get lost, mixed into personal photos, or buried in email inboxes.

Why it matters:

The IRS requires documentation for many deductions. If you’re audited, missing receipts = denied deductions.

Quick Fix:

• Snap a photo of every business receipt immediately

• Create a dedicated folder: Business Receipts 2025

• Use your QuickBook’s receipt upload tool

Even if the charge appears on your bank statement, receipts still matter!

3. Duplicate Transactions

This happens when:

• a bank feed disconnects temporarily

• imports double

• payment processor fees aren’t mapped correctly

• software rules apply twice

Why it matters:

Duplicates inflate expenses or revenue, throw off your balances, and cause messy reconciliations.

Quick Fix:

• Compare your register to your bank statement carefully

• Look for identical amounts on the same day

• Delete or exclude duplicates from import

4. Missing Transactions

This is the opposite problem: something didn’t import at all.

Why it happens:

• bank feeds drop

• payment processors (like Stripe) batch transactions

• owners forget cash purchases

Quick Fix:

During reconciliation, check for:

• missing deposits

• unrecorded expenses

• tips or fees not accounted for

• cash transactions

If the bank shows something the books don’t, add it manually.

5. Not Reconciling Monthly

If you skip reconciliation, small errors quickly snowball into alarming financial gaps.

Why it matters:

Reconciliation is how you verify:

• no transactions are missing

• no duplicates exist

• balances are accurate

• your books match what actually happened

Quick Fix:

• Reconcile all accounts monthly

• If you’re behind, do one month at a time

• Fix errors as you go—not all at the end

This one habit will solve 80% of bookkeeping issues.

6. Not Recording Owner Transactions Properly

Many business owners accidentally mix:

• personal purchases

• owner withdrawals

• owner contributions

• reimbursements

• business-only expenses

Why it matters:

Mixing personal and business expenses makes your books unreliable and creates compliance issues.

Quick Fix:

• Label personal charges clearly as Owner Draw or Personal

• Record money you put in as Owner Contribution

• Never “hide” personal charges in expense categories

Clean boundaries = clean books.

7. Forgetting to Track Unpaid Invoices (A/R)

You’d be surprised how many business owners don’t know who owes them money.

Why it matters:

Unpaid invoices reduce cash flow, delay growth, and often go uncollected simply because follow-ups didn’t happen.

Quick Fix:

Every week:

• Review open invoices

• Send reminders for past-due payments

• Re-send invoices that bounced

• Note clients who pay late consistently

A consistent follow-up system can increase revenue almost instantly.

Final Thoughts

Good bookkeeping isn’t about perfection — it’s about consistency.
If you can avoid these seven mistakes, your books will stay clean, your decisions will be better, and tax season will be far less painful.

If you ever feel stuck, behind, or unsure whether your numbers are accurate, that’s exactly what The Money-Smart Business Blog and Sutalo Bookkeeping are here to help you with.

The Money-Smart Business Blog provides educational content designed to help small business owners make informed decisions. This content is not tax, legal, or financial advice and should not be used as a substitute for personalized guidance. Always consult with a licensed professional before taking action based on this information.