Top 5 Bookkeeping Mistakes Spiritual Entrepreneurs Make (And How to Avoid Them)
Today, we're diving into something super important for all you spiritual entrepreneurs out there: the top 5 bookkeeping mistakes I see time and time again. Trust me, I get it—numbers might not be your jam, but having your financials in order is crucial to keep that abundance flowing. So, let's talk about how to avoid these common pitfalls and make sure your business is thriving!
1. Mixing Personal and Business Expenses
This is the biggie! It’s so easy to swipe your business card for personal stuff or vice versa—especially when you’re busy living your purpose. But mixing these up can turn tax time into a nightmare. Plus, it muddies the waters of your true financial picture.
How to Avoid It: Keep separate bank accounts for personal and business expenses. If you haven’t done this yet, it’s time to make the switch. Not only does this make bookkeeping easier, but it also makes your business look more legit in the eyes of the IRS. (You can also grab my free Business & Personal Expense Guide here. It’ll tell you what gets charged to which account!)
2. Not Keeping Receipts
You may think those little slips of paper aren’t that important, but trust me, they are! Without receipts, you risk losing out on valuable deductions, or worse—getting into hot water during an audit.
How to Avoid It: Use a digital receipt organizer. Snap photos of your receipts as soon as you get them and store them in a dedicated folder in your cloud storage or a bookkeeping app. This makes it easy to keep track of everything and reduces the clutter in your wallet (or that bottomless purse of yours!).
3. DIY Bookkeeping Without a Clear System
Trying to manage your books on your own, especially without a solid system, can lead to missed payments, forgotten invoices, and a whole lot of stress.
How to Avoid It: Invest in a reliable bookkeeping software or—better yet—hire a pro (wink, wink 😉). A clear system keeps everything organized, gives you a better understanding of your financial health, and saves you a ton of time and headaches.
4. Ignoring Financial Reports
Your financial reports are like the roadmaps to your business’s success. Ignoring them is like driving with your eyes closed. I know, I know—numbers can be overwhelming. But understanding your profit and loss, cash flow, and balance sheet is key to making informed decisions.
How to Avoid It: Set a monthly date with yourself (or with me!) to review your financial reports. Make it a ritual with a cup of tea, a comfy chair, and an open mind. This practice will help you stay connected to your business’s financial energy and guide you toward better decisions.
5. Not Planning for Taxes
Tax season shouldn’t sneak up on you like a Mercury retrograde! Without planning, you could find yourself scrambling for funds or missing deadlines, which can lead to penalties.
How to Avoid It: Set aside a percentage of your income each month specifically for taxes. This might feel like a buzzkill, but it’s a total game-changer when tax time rolls around. And if you’re not sure how much to set aside, we can figure that out together.
Final Thoughts
Bookkeeping doesn’t have to be a burden, and it definitely shouldn’t be something you dread. By avoiding these common mistakes, you’ll set yourself up for smoother sailing and more time to focus on what you love—serving your clients and living your purpose.
If you’re ready to clear the financial fog and get those books in divine order, book a discovery call with me today. Let’s turn those numbers into magic! 💫
Meet Diana McLaughlin
Diana is the founder of The Abundance Bookkeeper, where she specializes in providing bookkeeping and financial management services for spiritually-driven entrepreneurs. With a passion for helping purpose-led business owners achieve financial clarity and growth, Diana combines her expertise in bookkeeping with a deep understanding of her clients' unique needs. When she's not crunching numbers, you can find her geeking out over new software or guiding her clients toward a more abundant and stress-free financial future.
