Frightfully Common Bookkeeping Mistakes Small Businesses Make (and How to Avoid Them)

October isn’t just for spooky decorations—sometimes, your books can be downright scary too. From missing receipts to unrecorded sales, even small mistakes can snowball into major issues for hospitality business owners.

Here are the most frightful bookkeeping mistakes we see this time of year—and how to make them disappear for good.

1. Ignoring Reconciliation

Nothing haunts a business owner like an unbalanced account. Reconciling your bank and credit card statements each month is critical to keeping your records accurate.If you’re behind, our Catch-Up & Clean-Up Services can quickly get your accounts back in shape.

2. Mixing Personal and Business Expenses

Using one card for both business and personal expenses is a bookkeeping nightmare. Not only does it make tax time harder, but it can also create compliance risks.Fix: Keep dedicated business accounts and let our Monthly Bookkeeping Services categorize and track transactions properly.

3. Forgetting to Record Cash or Tips

Hospitality businesses handle cash daily, yet many fail to record tips and small cash transactions accurately. This can lead to payroll discrepancies and IRS issues later.Our Payroll Services are designed for restaurants and bars—ensuring all tipped income is tracked and reported correctly.

FAQ: Do I really need to record every tip?Answer: Yes. The IRS requires all tips of $20 or more per month to be reported. Proper tracking keeps your business compliant and your employees’ pay accurate.

4. Skipping Regular Financial Reviews

Putting off your bookkeeping until year-end can turn your finances into a horror story. Monthly reviews allow you to catch small errors before they become big problems.A simple Accounting Strategy Session can give you the clarity you need to make smarter financial choices.

5. DIY QuickBooks Gone Wrong

QuickBooks is a powerful tool—but only if it’s set up correctly. We’ve seen countless businesses lose valuable data due to incorrect setup or inconsistent categorization.Our QuickBooks Online Set-Up service ensures your accounting system is built correctly from day one, saving you hours of frustration.

6. Waiting Too Long to Ask for Help

Many business owners wait until tax time (or after) to reach out for help. By then, it’s often more time-consuming and expensive to fix the problems.The good news? It’s never too late to get your books back on track.

Avoid the October “bookkeeping scares” by scheduling a free consultation with Averil today. We’ll make sure your finances are crystal clear—no tricks, just treats for your bottom line.