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I am calling this the "Mistake post".
Wait. Did I post this by mistake?....
No, I promise. This is a bookkeeping post about the mistakes that quietly cost business owners money. There are many, so I will take one mistake at a time. This post is only about Mistake 1.
Mistake 1: Mixing personal and business spending One coffee here, one grocery bill there, and by the end of the month nobody knows whose money was spent. Yes, that coffee was a "business meeting". With yourself.
It looks small. It is not. Here is what it quietly does to your business:
Your profit becomes wrong. Personal costs sit inside business expenses, so the numbers do not show how the business is really performing.
Your bank reconciliation becomes slow. Every personal payment needs an explanation before your books can match the bank statement.
Your tax work becomes harder. When costs are mixed, it is difficult to prove which expenses truly belong to the business.
You lose clarity. You cannot tell how much the business earned and how much you took out for yourself.
Check your statement once a week. Small habit. Clean books. Much less stress at year end.
Mistake 2 is coming in the next post, so follow along so you do not miss it.
Be honest: have you ever paid for something personal from the wrong account?
The network for creativity
Join 1.25M professional creatives like you
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Your books say $180,000 profit. Reality says $135,000. 😬
Episode on accrual expenses 👇
The case: A small trading company came to us at year-end. Their profit looked great, but they had only recorded bills they had already paid.
What was missing:
✅ Audit fee: work done in December, invoice not yet received ($20,000)
✅ Utilities: December usage, bill arrives in January ($10,000)
✅ December salaries: paid in January ($15,000)
That is $45,000 of expenses that belong to this year but never touched the bank account, so they never hit the P&L.
The fix:
Dr Expenses $45,000
Cr Accrued liabilities $45,000
The lesson: Accrual accounting records an expense when you incur it, not when you pay it. If you only look at your bank, your profit is overstated, your tax is wrong, and your decisions are built on a number that isn’t real.
💬 Comment “ACCRUAL” and I’ll send you a simple month-end accruals checklist.
Follow for the next contra episode 🎬
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#Accounting #AccrualAccounting #AccrualExpenses #Bookkeeping #AccountingTips #FinancialLiteracy #SmallBusiness #Entrepreneur #Startup #Founders #Finance #CFO #Accountant #ACCA #LearnAccounting #BusinessTips #AccountingCaseStudy #contra #CountingCrux
Business owners, be honest: which money task do you dread most? 👀
Chasing unpaid invoices 😟
Creative business owners: Is your accounting helping you grow, or just helping you meet deadlines?
If you run a design studio, creative agency, or marketing business, you know that growth means more than landing new clients and delivering great work.
It’s also about knowing whether your business is actually making money.
You might have a full client roster, exciting projects, and growing revenue — but do you know which clients are most profitable? Whether your pricing covers your true costs? Or how much you can afford to invest in your next big move?
As an accountant, I believe your numbers should do more than keep you compliant. They should help you make smarter business decisions.
Here’s what good financial management can help you do:
📊 Understand your profitability — Know which services, projects, and clients are generating real returns.
💰 Price your services with confidence — Make sure your rates reflect your costs, time, and business goals.
📈 Manage cash flow — Plan for quieter months, cover operating expenses, and avoid unnecessary financial stress.
🎯 Make better growth decisions — Know when you can hire, invest in marketing, upgrade your tools, or expand your studio.
Because a busy agency isn’t always a profitable one. And more revenue doesn’t automatically mean more money in your pocket.
Your creativity builds the business. Your financial clarity helps you grow it.
If you run a design studio, creative business, or marketing agency and want to move beyond simply keeping your accounts up to date, let’s talk.
I’d love to help you turn your numbers into a tool for growth — not just another deadline to meet.
#CreativeBusiness #MarketingAgency #DesignStudio #AccountingForBusiness #BusinessGrowth #FinancialClarity
Your numbers should tell a story, not just tick compliance boxes.