The #1 Mistake Small Business Owners Make (And How to Fix It)

🧾 Blog Title: "The #1 Mistake Small Business Owners Make (And How to Fix It)"

Introduction:You work hard to grow your business—but one silent mistake can cost you thousands every year. As an accounting firm working with entrepreneurs across Canada, we’ve seen this mistake over and over again:

Mixing personal and business finances.

Why It’s a Problem:

• CRA sees red flags when your personal and business money are blended.

• It makes bookkeeping messy and GST/HST filings inaccurate.

• You could miss out on major tax deductions like fuel, office supplies, or meals.

• In case of an audit? You’re exposed.

  
  

Real Example (Anonymous):One trucking client deposited all revenue into his personal bank account. He thought it was “all the same.” But at year-end, reconciling expenses became a nightmare—and he missed over $4,000 in legitimate write-offs.

The Fix (Simple Steps):

1. Open a separate business bank account.

2. Use that account for all revenue and expenses.

3. Pay yourself a fixed amount (draw or salary).

4. Track expenses with an app like Wave, QuickBooks, or even Excel.

5. Work with a bookkeeper or accountant every quarter.

   
   

Bonus Tip:Use your business account only for business. Avoid buying groceries, Netflix subscriptions, or personal meals—it’ll protect you and make tax season stress-free.

Final Words:Clean books = clear vision. Don’t let financial clutter block your growth. As the saying goes: “You can’t scale what you can’t measure.”