Top 5 Bookkeeping Mistakes Small Businesses in Idaho Make
Bookkeeping isn’t just about tracking numbers—it’s about protecting your time, your money, and your business future. At Wealth Wise, we’ve seen firsthand how common bookkeeping mistakes quietly drain small businesses across Idaho. Whether you're a solo entrepreneur or growing a small team, steering clear of these pitfalls can save you thousands and bring peace of mind for years to come.
Here are the top 5 bookkeeping mistakes Idaho business owners make—and how to avoid them:
1. Mixing Personal and Business Finances
This is one of the most common (and costly) mistakes. Using the same account for your groceries, rent, and business expenses might seem harmless, but it can become a nightmare when it’s time to file taxes or apply for a loan.
Fix it:
Open a dedicated business checking account and credit card—even if you're a sole proprietor. It keeps things clean, simplifies tax time, and helps protect your personal liability.
2. Waiting Until the End of the Year to Reconcile
Many business owners wait until tax season to look at their books, only to find errors, missed deductions, or incomplete records. By then, it’s too late to fix most of it in a timely manner which means you’re paying more for a bookkeeper (or accountant!) to adjust it for you. You might then file a tax extension which means that refund you’re hoping to get is pushed out even further!
Fix it:
Reconcile your accounts monthly. Whether you do it yourself or hire a bookkeeper, this simple habit will help you catch errors early and stay on top of your cash flow.
3. Using the Wrong Chart of Accounts (or None at All)
Your Chart of Accounts is the foundation of your bookkeeping. A generic or cluttered COA makes it hard to track what's really going on in your business. Many small business owners function off of excel, but this keeps things too cluttered to really see the overall picture which can make job costing and cash flow planning a real headache.
Fix it:
Set up a custom Chart of Accounts based on your industry and how you want to understand your finances. A well-organized COA gives you clean financial reports, not guesswork.
4. Not Tracking Receipts or Categorizing Expenses Properly
The IRS requires supporting documentation for all business deductions. If you're tossing receipts in a glove box or inbox and calling it good, you're at risk. If you are ever audited, you need a receipt for all purchases and those need to be saved somewhere that is easily accessible and organized.
Fix it:
Use a system like QuickBooks Online, which lets you snap photos of receipts and match them to transactions. Even better—build a digital workflow you actually stick to.
5. Doing It All Yourself Without Support
DIY bookkeeping is common in the early stages of business—but it often leads to burnout, mistakes, and underpaid taxes. Trying to figure it all out alone costs more in the long run. You’ll pay more for someone to fix your books in the future rather than starting off from the beginning with the help you need.
Fix it:
Whether it’s hiring a part-time bookkeeper, scheduling monthly reviews, or investing in QuickBooks training, support pays for itself in clarity, confidence, and time saved.
If you're running a small business in Idaho, you’re already wearing enough hats. Your finances deserve attention and structure—not last-minute scrambling. Avoiding these five mistakes can be the difference between surviving and thriving.
Need help cleaning up your books or getting started the right way?
We offer monthly reconciliation, historical cleanup, and QBO training designed for real small business owners—not accountants.
