Common Accounting Mistakes New Entrepreneurs Make (and How to Avoid Them)

Rep Lock Marketing
Jun 27
3 min read

Starting a business in Austin or Round Rock is exciting—but it also comes with a steep learning curve, especially when it comes to finances. At Alviso CPA, we’ve helped dozens of new entrepreneurs clean up costly mistakes that could’ve been avoided with just a bit of planning and expert support.

In this blog, we’ll break down the most common accounting errors new business owners make and how to avoid them from the start.

1. Mixing Personal and Business Finances

The mistake:Many new entrepreneurs use one bank account for both business and personal expenses. This makes it extremely difficult to track profitability, organize deductions, and prepare for tax season.

The fix:Open a separate business checking account—even if you’re a sole proprietor. This small step will save hours (and headaches) during bookkeeping and taxes. We help clients structure their finances properly from day one.

2. DIY Bookkeeping Without a Plan

The mistake:Trying to handle all your finances alone might work for a few weeks… until you get busy or make an error. Missing receipts, miscategorized expenses, and unbalanced books can quickly pile up.

The fix:Whether it’s QuickBooks, Wave, or Xero, we recommend setting up a system early—and letting a professional review it regularly. At Alviso CPA, we offer affordable monthly bookkeeping for startups and solopreneurs so your books are clean and compliant from day one.

3. Forgetting to Track Tax-Deductible Expenses

The mistake:Receipts get lost. Mileage logs go unrecorded. Subscriptions or office supplies get paid from the wrong card. Over time, that’s money left on the table when tax season arrives.

The fix:Keep a digital folder or app to snap and upload receipts as you go. Better yet, let Alviso CPA manage your expense tracking and provide real-time reports to ensure you’re claiming every deduction legally available to you.

4. Missing Quarterly Tax Payments

The mistake:If you’re self-employed, you're usually required to make estimated quarterly tax payments to the IRS and the Texas Comptroller. Many new business owners either don’t know this or underestimate what they owe—resulting in surprise penalties.

The fix:We help clients calculate quarterly payments, set calendar reminders, and submit payments electronically to avoid fees and interest. Staying on top of these can save hundreds (or even thousands) per year.

5. Not Planning for Payroll Growth

The mistake:Many entrepreneurs don’t plan for how they’ll pay contractors, employees, or even themselves. Once it’s time to expand, they scramble to meet labor law requirements or process payments correctly.

The fix:Alviso CPA provides small business payroll solutions that are flexible, compliant, and designed to scale. Whether you’re hiring your first employee or managing a team, we make payroll stress-free.

6. Overlooking Business Structure Impacts

The mistake:Choosing the wrong business entity (LLC, sole proprietor, S-corp, etc.) can affect your taxes, liability, and how you’re paid.

The fix:We guide entrepreneurs in choosing the best entity for their goals. For example, an LLC taxed as an S-Corp might save thousands in self-employment taxes—if your business qualifies. We walk you through these decisions and file the necessary paperwork.

7. No Financial Forecast or Budget

The mistake:Too many new businesses operate without a plan—guessing at revenue goals, growth timelines, or expenses.

The fix:With Alviso CPA, we’ll help you develop a realistic budget, monthly revenue goals, and forecast reports. These aren’t just numbers—they’re a roadmap for growth and investor confidence.

📍 Local Support for Austin & Round Rock Entrepreneurs

Whether you're just getting your LLC paperwork in order or you've already landed your first client, Alviso CPA offers hands-on, personal support for small businesses and startups across Central Texas.

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