5 Financial Mistakes Small Business Owners Make (and How to Avoid Them)

Introduction

Even the most passionate and driven entrepreneurs can run into financial trouble—not because of bad business ideas, but because of simple, avoidable mistakes. Here are five of the most common ones we see, and how to stay clear of them.

1. Mixing Personal and Business Finances
Blurring the line between business and personal expenses leads to messy books, tax issues, and unclear financial insights.
Solution: Open a separate business bank account and credit card, and track transactions accordingly.

2. Delaying Bookkeeping
Putting off your bookkeeping “until later” leads to confusion, errors, and missed deductions.
Solution: Set a regular schedule or hire a professional to maintain accurate monthly records.

3. Ignoring Cash Flow
Profit and cash are not the same. A business can be profitable and still run out of money.
Solution: Track cash inflow and outflow separately. Use cash flow forecasts to stay ahead.

4. Not Reviewing Financial Reports
P&L and Balance Sheets aren’t just for your accountant—they tell the story of your business health.
Solution: Review reports monthly. Understand your margins, expenses, and revenue trends.

5. DIY Financial Modeling Without Expertise
Guessing or using outdated spreadsheets can lead to poor decisions.
Solution: Work with a financial professional to create a solid, data-backed model.

At Tangerine Financial Solutions, we help business owners avoid these pitfalls through hands-on bookkeeping and strategic financial services. With clear numbers and forward-thinking insight, you can lead your business with confidence.

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