Even the most organised business owners can slip up when it comes to managing their books. Small bookkeeping mistakes can quickly snowball into bigger issues — missed payments, inaccurate reports, or compliance headaches.
Here are five of the most common mistakes we see — and how to avoid them.
Using one bank account for both personal and business transactions might seem convenient, but it makes tracking expenses and claiming
deductions a nightmare.
How to avoid it:
Keep a separate business bank account and card. You’ll save hours of sorting later and have cleaner, more accurate records.
It’s easy to delay reconciling accounts or entering receipts when things get busy — but those delays often lead to missing information or
costly oversights.
How to avoid it:
Set a weekly or fortnightly schedule for bookkeeping tasks, or let your bookkeeper manage it for you to stay consistently up to date.
Applying the wrong GST codes is a common (and avoidable) mistake that can cause compliance problems at BAS time.
How to avoid it:
Review your chart of accounts regularly and get professional oversight from a Registered BAS Agent to ensure accuracy.
Paper receipts fade, go missing, or pile up in drawers. Without backup documentation, verifying transactions later becomes a headache.
How to avoid it:
Use cloud-based tools like Hubdoc or Lightyear to securely store and link receipts, invoices,
and documents directly to Xero.
DIY bookkeeping might seem like a cost-saving option, but it can lead to missed deadlines, errors, and unnecessary stress.
How to avoid it:
Outsource your bookkeeping to a qualified professional who can manage your accounts accurately — freeing you to focus on your business.
Bookkeeping is the foundation of every healthy business — and small mistakes can have big consequences. The good news? With the right systems, tools, and professional support, it’s easy to stay compliant, organised, and in control.
At Kate Keeps Books, we help small to medium businesses streamline their bookkeeping and avoid these common pitfalls — so you can spend more time doing what you do best.