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Small Business Owners in Canada: Avoid These 7 Bookkeeping Mistakes at All Costs!



If you're a small business owner in Canada, you might be making costly bookkeeping mistakes without even realizing it! These errors can lead to CRA audits, cash flow issues, and even business failure. Want to know what they are—and how to fix them before it’s too late? Keep reading!

1. Mixing Business and Personal Finances

This is a recipe for disaster. Without a clear separation, tax season becomes a nightmare, and you could miss out on valuable deductions. Open a business bank account and use a business credit card from day one.

2. Ignoring Tax Deadlines

Miss a deadline, and the Canada Revenue Agency (CRA) will hit you with penalties and interest. Set reminders for GST/HST, payroll, and income tax deadlines to avoid unnecessary fines.

3. Not Tracking Every Expense

Every dollar counts! If you don’t track small expenses, you’re likely missing out on tax deductions. Use bookkeeping software like QuickBooks or Xero to stay on top of your spending.

4. Forgetting to Set Aside Money for Taxes

Many small business owners spend everything they make—until tax season arrives and they realize they owe thousands. Avoid this trap by setting aside at least 25-30% of your income for taxes in a separate savings account.

5. DIY Bookkeeping Without Proper Knowledge

Bookkeeping isn’t just about recording transactions—it’s about understanding your financial health. If numbers aren’t your thing, outsourcing to a professional like Transfigures Bookkeeping can save you from costly mistakes.

6. Not Reconciling Accounts Monthly

If you’re not comparing your bank statements with your books each month, errors and fraud could go unnoticed. Make reconciliation a habit to keep your records accurate.

7. Failing to Invoice Promptly and Follow Up

Late invoices mean delayed payments, which hurts your cash flow. Automate invoicing with tools like Stripe or PayPal and send timely reminders to clients.

Don’t Let These Mistakes Ruin Your Business!

If bookkeeping is causing you stress, Transfigures Bookkeeping is here to help! We specialize in bookkeeping for Canadian small businesses, ensuring compliance and financial clarity.

🚀 Book a FREE consultation today! 📧 Email: isna@transfigures.ca
📞 Call: 705-881-6437
💻 Visit: https://transfigures.ca

Location: Barrie, ON, Canada

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