The Top 5 Bookkeeping Mistakes Small Business Owners Make—And How to Avoid Them

Running a small business in Canada is no small feat. Between serving clients, growing your brand, and wearing 10 different hats, it’s easy to let the numbers slide—until tax season, an audit, or cash flow issues force a wake-up call.

At Belmont Business Solutions, we’ve helped dozens of business owners regain control of their books and build systems that scale. Here are the top 5 bookkeeping mistakes we see time and again—plus how to avoid them.

1. Mixing Personal and Business Expenses

❌ The Mistake:

Using one bank account or credit card for both personal and business spending.

💡 The Fix:

Open a dedicated business bank account and credit card. This simplifies reconciliation, gives you a clear financial picture, and keeps CRA happy. Bonus: It also makes your company look more legitimate to lenders and investors.

2. DIY Bookkeeping Without a System

❌ The Mistake:

Tracking everything in spreadsheets, paper receipts, or memory. Eventually, something falls through the cracks.

💡 The Fix:

Invest in a cloud-based bookkeeping platform like QuickBooks Online (QBO). It connects directly to your bank, tracks expenses automatically, and allows your bookkeeper to work in real-time.

3. Falling Behind on HST/GST Filings

❌ The Mistake:

Missing CRA remittance deadlines, claiming HST without being registered, or under-reporting collected tax.

💡 The Fix:

Register as soon as you hit the $30,000 threshold and set calendar reminders for filing deadlines. Work with a professional to ensure the numbers are accurate and the right method (quick vs. detailed) is being used for your situation.

4. Not Reviewing Financials Monthly

❌ The Mistake:

Only looking at your numbers once a year—usually when taxes are due.

💡 The Fix:

Set a monthly financial review process. This lets you catch errors, monitor cash flow, and make proactive decisions. Belmont clients receive a monthly financial snapshot that helps them stay on track without feeling overwhelmed.

5. No Backup or Documentation Trail

❌ The Mistake:

Lost receipts, no documentation for large expenses, and no audit trail in case CRA comes knocking.

💡 The Fix:

Use apps like Dext or Hubdoc to snap receipts, or store them in Google Drive organized by month. Make sure all expenses over $100 have proper documentation and business relevance.

✨ The Bottom Line

Clean books aren’t just for tax season—they’re a foundation for growth. Whether you’re trying to get funding, understand your margins, or expand your operations, reliable bookkeeping gives you the clarity and confidence to move forward.

At Belmont Business Solutions, we don’t just crunch numbers—we give business owners peace of mind and systems that scale. If you’re tired of the chaos and want bookkeeping off your plate, let’s talk.

📞 Ready to get your books back on track?
Book a free consultation or contact us at info@belmontsolutions.ca