Top 5 Bookkeeping Mistakes Small Businesses Make

1. Mixing Personal and Business Finances

Always maintain separate bank accounts for personal and business transactions.

2. Not Keeping Receipts

HMRC requires you to keep records for at least 6 years. Digital copies are acceptable.

3. Late VAT Returns

Filing VAT returns late can result in penalties and interest charges from HMRC.

4. Ignoring Bank Reconciliation

Regular bank reconciliation helps identify discrepancies early.

5. DIY When You Should Outsource

Professional bookkeeping saves time and often pays for itself through better financial management.