Running a small business can be tricky at the best of times — but when accounting errors creep in, they can come back to haunt you long after the books are closed. 👻

Here are some of the most common financial frights we see — and how to keep them from turning into a nightmare.

👺 1. Ignoring Bookkeeping Until It’s Too Late

Leaving your books until year-end might seem harmless… until you’re staring down a mountain of receipts and missing invoices. Disorganised records lead to stress, missed expenses, and inaccurate figures — a horror story for any business owner.

Avoid it: Keep your books up to date throughout the year, or consider outsourcing to an accountant who can handle it for you.

🧾 2. Mixing Business and Personal Expenses

Using one account for both personal and business spending might seem convenient, but it’s a classic accounting curse. It makes it difficult to track cashflow and can cause real trouble if HMRC ever comes calling.

Avoid it: Always keep a separate business bank account and card — and record transactions properly.

🕸️ 3. Missing Tax Deadlines

There’s nothing scarier than an HMRC penalty letter dropping through your letterbox. Late filing or payment can lead to fines and interest charges that eat into your profits.

Avoid it: Keep a clear calendar of deadlines and set reminders — or better yet, let your accountant handle submissions on time.

💀 4. Not Setting Aside Money for Tax

It’s all too easy to get caught out when the tax bill arrives. Without regular planning, that lump sum can deliver a nasty shock.

Avoid it: Put aside a percentage of your income each month to cover tax and National Insurance — and use management accounts to forecast upcoming liabilities.

🧙‍♀️ 5. DIY Accounting Without the Right Knowledge

Accounting software can be powerful, but only if used correctly. Misclassifying expenses, forgetting adjustments, or misunderstanding VAT rules can lead to costly mistakes.

Avoid it: Work with a professional accountant who can check your figures, advise on compliance, and help you make better business decisions.

🕯️ Final Thought

Don’t let accounting errors come back to haunt your business. With good record-keeping, timely tax submissions, and expert advice, you can rest easy knowing your finances are under control.

If you’d rather banish the bookkeeping bogeyman for good, our team can help — from cloud accounting support to full-service management accounts.

💬 Get in touch today to keep your business ghost-free this Halloween!

Book a free consultation · Our bookkeeping services · Tax returns & deadlines