Top ten small business accounting mistakes we see all the time. And how you can avoid them.

I’m sure most small business owners didn’t start a business because they love spreadsheets, cashflow forecasting or book-keeping.

And yet, somehow, running a business means you’re expected to be a director, a salesperson, a demand planner, a tea-maker and an accountant. All multiple times before lunch.

It’s no wonder things slip through the cracks sometimes.

Small business accounting mistakes (and how to avoid them!)

Here are 10 of the most common small business accounting mistakes we see and some small changes that can help you avoid the same pitfalls. No finance degree needed - I promise!

1. Missing receipts

It starts with: “I’ll deal with that later.”

It ends with you, at 11pm, rifling through a bag full of receipts, trying to read one that’s been through the washing machine. Twice.

💡 Try this instead: Snap or forward your receipts the moment you get them. Tools like Hubdoc (which comes free with Xero) can take care of the rest.

2. Waiting until January to ask your accountant for help

We get it. There are a million other things to think about when you run a business. 

But leaving your accounts until the last minute means fewer options, more stress, and a higher chance of missing something important.

💡 Try this instead: Book in a mid-year check-in. You don’t have to be on top of everything all the time, but a rough steer at the midway point will save you hours (and hair loss) later.

3. Assuming your accountant knows everything

We’re good, but we’re not psychic. 

If something changes in your business (a new income stream, a loan, a VAT registration…), let us know. We can’t help you plan around things if we don’t know about them.

💡 Try this instead: Drop us a quick email when something changes along with a brief explanation. We love information! Information helps us help you.

4. Doing everything yourself to ‘save money’

Outsourcing might feel like a luxury, but trying to do it all yourself often ends up being far more costly - financially and mentally.

💡 Try this instead: Think of your accountant like a pressure valve. The earlier you bring us in, the more we can take off your plate. And yes, we can often spot things that will save you money too.

5. Ignoring your numbers because they’re “not your thing”

Ok, fair enough. Numbers aren’t everyone’s cup of tea. But ignoring them won’t make them go away, and they hold all the clues to how your business is really doing.

💡 Try this instead: Get a system that makes the numbers feel less overwhelming. And ask us to explain things clearly. We promise we know how to speak human.

6. Forgetting to put money aside for tax

It’s easy to think “that money’s mine now”. Until HMRC comes calling and you realise it wasn’t. Or at least, not all of it.

💡 Try this instead: Put aside a set percentage of every invoice as soon as you get paid. You’ll thank yourself come tax season.

7. Charging too little and never reviewing your prices

If you haven’t changed your pricing in the last couple of years, chances are your profit margin has quietly shrunk. Costs have gone up, have your prices?

💡 Try this instead: Review your pricing annually. It’s not greedy, it’s about staying viable.

8. Not checking in until year-end

We call it year-end for a reason. It’s not the best time to start untangling 12 months of transactions. By then, most of your options for fixing things have run out.

💡 Try this instead: Mid-year is the ideal time for a review. It gives you time to adjust things before crunch time.

9. Still using spreadsheets

Spreadsheets are brilliant for packing lists or wedding guest trackers. But for modern business accounting? Not so much.

With Making Tax Digital on the horizon, spreadsheets are becoming less practical and less compliant. And accounting software has come a long way since the days of mystery error codes and reports that required a maths degree to translate.

💡 Try this instead: Get set up on proper accounting software like Xero. It doesn’t have to be complicated. We’ll even show you how to get started if you like.

10. Avoiding your accountant when things get messy

We get it. When things feel chaotic, the temptation is to avoid the inbox entirely.

But the sooner we know there’s a mess, the sooner we can help untangle it. And we won’t judge you (really we won’t!). I guarantee we’ve seen worse, and we just want to help.

💡 Try this instead: If you’re overwhelmed, say so. It’s literally what we’re here for.

Looking for more support with your finances?

Why not sign up for our free webinar for sole traders and SME business owners on 1st July? 

In this one-hour lunchtime session, I’ll answer the top 10 most-asked questions we hear from clients. 

I’ll share tips you can use straight away to make your finances simpler. And you’ll also have the chance to ask me anything that’s got you scratching your head in confusion. 

Head here for more info and to secure your place