Five bookkeeping mistakes small businesses make and how to avoid them
Written by Abdallah Saalah Abdallah from Admin Books
Bookkeeping might seem straightforward until small mistakes start turning into big headaches. At AdminBooks, we work with businesses across Birmingham and Solihull, and we often see the same common issues that cause unnecessary stress, cost money, or lead to penalties.
Here are five of the most common mistakes and how to avoid them.
1 Leaving it too late
Waiting until the end of the quarter or even the end of the year to sort your books is risky. You might miss deadlines, forget expenses, or find yourself rushing through important reports.
What to do instead
Keep your records updated weekly or monthly. Or better yet, work with a bookkeeper who keeps everything tidy in real time.
2 Mixing business and personal finances
This is one of the biggest red flags we see.
Using the same bank account for both personal and business transactions makes it hard to track business expenses and causes problems with HMRC.
What to do instead
Set up a dedicated business account and use it consistently. We can help you clean up the past and stay organised moving forward.
3 Missing VAT deadlines
For VAT-registered businesses, missing a deadline can result in fines, interest, and stress.
What to do instead
Use tools like Xero that remind you of deadlines and partner with someone like AdminBooks to ensure your returns are submitted correctly and on time.
4 Not backing up records
Paper receipts fade. Spreadsheets crash. If you don’t have digital backups, you risk losing important information.
What to do instead
Store your records securely in the cloud. At AdminBooks, we use tools that ensure everything is backed up, encrypted, and easy to access.
5 Trying to do it all yourself
Many business owners start out managing their books on their own—but as the business grows, so does the risk of errors and missed opportunities.
What to do instead
Focus on what you do best running your business and let a trusted professional handle the books. We tailor our services to fit your size and industry.
Final thoughts
Bookkeeping mistakes are easy to make but also easy to fix with the right support.
At AdminBooks, we help businesses across Greater Birmingham stay organised, compliant, and confident in their finances.
If you’re ready to leave these mistakes behind, let’s talk.
Visit: www.adminbooks.co.uk
Email: abdallah@adminbooks.co.uk
Call: 0121 269 7845