Latest blog from the hansen company

October is the season for ghost stories, haunted houses, and things that go bump in the night. But for small business owners, some of the scariest frights aren’t found in dark alleys — they’re hidden in the accounts. From missed deadlines to messy recordkeeping, accounting mistakes can quickly turn into real-life nightmares.

The good news? These financial frights are easy to avoid once you know where to look. Here are five of the most common mistakes that haunt small businesses —and how you can keep them from creeping into your books.

1. Mixing Personal and Business Finances 

The fright: Using the same account for both personal and business expenses might seem harmless at first, but it can cause confusion, missed deductions, and a bookkeeping tangle that’s a nightmare to unpick at year-end.

The fix: Open a separate business bank account and use it exclusively for business transactions. Pay yourself through a salary, dividend, or draw rather than dipping directly into business funds. This not only makes your accounts cleaner but also presents a more professional image to lenders, investors, and HMRC.

2. Ignoring Cash Flow 

The fright: A business can be profitable on paper but still struggle — or even fail — if cash flow isn’t managed. Running out of cash to cover bills, payroll, or tax obligations is one of the most chilling mistakes small businesses face.

The fix: Monitor cash flow regularly (monthly at a minimum). Forecast income and expenses so you can anticipate pinch points, and set aside money for tax. Using simple cloud accounting tools can give you real-time visibility, so you’re never in the dark about where your money stands.

3. Not Keeping Proper Records 

The fright: Lost receipts, missing invoices, and incomplete records can lead to inaccurate accounts and serious problems if HMRC comes knocking. Even worse, you may miss out on legitimate tax deductions simply because you didn’t keep the paperwork.

The fix: Adopt a “little and often” approach. Schedule a weekly 15-minute slot to log expenses, chase invoices, and upload receipts to your accounting software. Digital recordkeeping tools make this quick and painless — and keep your books tidy year-round.

4. Forgetting Tax Deadlines 

The fright: Late submissions and missed payments can result in penalties, interest charges, and unnecessary stress. These deadlines come around every year, but they still manage to sneak up on busy businessowners.

The fix: Mark all important deadlines in your calendar (Self Assessment, VAT, payroll, Companies House filings, etc.) and set multiple reminders. Better yet, work with an accountant who can keep you a head of the dates and ensure everything is filed on time.

5. Trying to Do It All Yourself 

The fright: Handling your own bookkeeping and tax returns may seem like a cost-saving measure, but mistakes in VAT, payroll, or corporation tax can be expensive to fix later — not to mention the time and stress it takes away from actually running your business.

The fix: Consider where your time is best spent. An experienced accountant doesn’t just file forms — they provide advice, help you plan, and often save you more money than they cost. Think of it less as an expense and more as an investment in your business’s financial health.

Don’t Let Accounting Mistakes Haunt You

The scariest thing about these mistakes is how common — and avoidable — they are. With a few simple systems, and the right support, you can keep your finances in order and focus on growing your business.

This October, don’t let accounting frights creep into your business. Get the right advice, stay organised, and treat yourself to the peace of mind that comes with knowing your numbers are in safe hands.

 If you’d like help avoiding these accounting nightmares, our team is here to keep your business finances calm, clear, and under control. Get in touch today for a friendly chat about how we can help.

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