Running a small business is demanding, and bookkeeping often ends up at the bottom of the priority list.

But keeping your financial records in order is more important than many realise.

We’ve worked with many small businesses over the years, and we see the same common mistakes pop up time and time again.

Here are five of the most frequent — and how you can avoid them.

1. Leaving It All to the Last Minute

It’s tempting to put off your bookkeeping till the end of the year. But cramming everything in at once increases the chance of errors, missed expenses, or duplicate entries. Regular check-ins (weekly or fortnightly) help keep everything accurate and up to date — and save you stress down the line.

2. Mixing Business and Personal Finances

Using the same bank account or card for both personal and business expenses might seem convenient, but it creates a lot of confusion. It becomes harder to track spending, takes more time to identify deductible expenses, and prove things to HMRC if needed. A separate business account makes life easier and keeps your records clean.

3. Not Keeping Receipts or Supporting Documents

Even if you’re using software, it’s important to keep supporting records. Whether that’s physical receipts or digital copies snapped with an app, having evidence of your expenses is crucial in case HMRC ever asks for it. Many bookkeeping tools allow you to link receipts directly to the transaction — simple and secure.

4. DIY Bookkeeping Without Support

There’s nothing wrong with doing your own bookkeeping, especially when you’re just starting out — but mistakes can be costly. From miscategorising expenses to missing deadlines, it’s easy to make errors. Working with a bookkeeper (even just for occasional check-ins) can help avoid penalties and give you peace of mind.

5. Forgetting to Review the Numbers

Bookkeeping isn’t just about compliance — it’s a powerful tool to help you understand your business. Regularly reviewing your profit and loss, tracking your cash flow, and comparing your figures month to month can help you make smarter decisions and stay in control.

Need Help?

At Sky Bookkeeping, we work with small businesses across the UK to simplify their bookkeeping and take the pressure off. Whether you need help catching up, setting up software, or just want someone to check in now and then — we’re here to help.

📩 Contact us today to book a free consultation and see how we can support your business.