The Most Common Money Mistakes New Entrepreneurs Make

Starting a business is exciting—but it can also be overwhelming, especially when it comes to managing money. Most entrepreneurs aren’t accountants, and that’s okay. But avoiding early financial mistakes can save you a lot of time, stress, and lost profits.

Here are the top money mistakes we see new business owners make—and how to avoid them.

1. Mixing Business and Personal Finances

Using your personal credit card or bank account for business expenses may seem convenient, but it creates a nightmare at tax time. It also makes it harder to track how your business is really doing.

Open a separate business bank account and keep all income and expenses in one place. It’s a small step that builds big trust—with both you and your accountant.

2. Underpricing Services

New entrepreneurs often undervalue their time, especially when just starting out. But low prices can quickly lead to burnout and unsustainable margins.

Instead, calculate your costs, understand the market, and price for profit—not just to “get the sale.”

3. Skipping Bookkeeping

Waiting until tax season to organize your finances is a recipe for errors and missed deductions. Make bookkeeping a monthly habit—or better yet, automate it with software or hire a pro.

4. Ignoring Taxes Until It’s Too Late

Many first-time business owners are surprised by how much they owe in taxes. The key is to set aside 25–30% of your income for taxes and make estimated payments throughout the year.

Planning ahead turns tax season from a crisis into a checkbox.

5. Operating Without a Budget

Without a budget, it’s easy to overspend—or not invest where it matters. A basic monthly budget helps you prioritize, make confident decisions, and plan for growth.

Track your recurring expenses, income goals, and forecast cash flow. This clarity gives you freedom to grow strategically.

Final Thoughts

You don’t need to be a financial expert to run a successful business—but you do need systems that support your goals. Avoiding these common pitfalls will set you up for long-term success.

Accrual was built to help entrepreneurs get smart with their numbers. Whether you need help with budgeting, pricing, or tax strategy—we’re here to make finance feel simple.

🚀 Ready to get your money on track?
Reach out to schedule a free consult and start building your financial foundation the right way.