The 3 Biggest Financial Mistakes Small Business Owners Make (and How to Avoid Them)
Running a small business is more than selling a product or service. You’re hiring people, managing customers, paying bills, and trying to grow — often all at the same time. It’s no wonder finances slip to the bottom of the to-do list.
But here’s the truth: the numbers don’t lie. If you’re not paying attention to them, your business could look healthy on the outside while quietly bleeding cash behind the scenes.
At Grable CPA & Company, we’ve worked with hundreds of business owners like you— restaurants, auto shops, print shops, service providers — all under $1M in revenue and grinding to grow. And no matter the industry, we keep seeing the same mistakes. The good news? They’re avoidable with the right systems and a proactive approach.
Let’s break them down.
1. Waiting Until Tax Season to Ask Questions
Most small business owners think of their CPA as someone they see once a year. They bring in their receipts, get their taxes filed, and move on. But by then, it’s too late to make any real changes.
We had a client who moved from a state with no income tax to one that did have it. Right before moving, they withdrew money from their retirement account. If they’d waited a couple of weeks, they could have saved thousands in state tax. But by the time they told us, it was March — and the damage was already done.
The takeaway: Tax prep = compliance. Tax planning = strategy.
If you want to actually save money, you need a CPA who checks in throughout the year.
How to avoid this mistake:
Schedule quarterly reviews with your CPA.
Pick up the phone before making major financial decisions (buying equipment, moving states, taking distributions).
Ask questions — don’t wait until February to “see how it all shakes out.”
2. Flying Blind with Messy Books
If your books aren’t accurate, neither are your decisions. Period.
We’ve seen business owners who thought they were profitable, only to realize their loan payments weren’t coded correctly or their expenses were in the wrong categories. When that happens, the financial statements don’t match reality. And if the numbers aren’t telling the truth, you can’t plan for growth, pay the right amount of tax, or even secure funding.
Think about it: would you drive down the interstate with a blindfold on? Of course not. But running your business without clean books is basically the same thing.
How to avoid this mistake:
If bookkeeping is eating up your time, hand it off.
Review your financials monthly — even just a simple Profit & Loss and Balance Sheet.
Ask your CPA to explain what the numbers actually mean, not just hand you a report.
The earlier you catch problems, the easier (and cheaper) they are to fix.
3. Being Afraid to Use Debt (the Wrong Way)
Debt gets a bad reputation. Many owners think taking on any debt is a failure. But here’s the reality: debt is a tool. Like any tool, it can help you grow — or hurt you if used the wrong way.
The bad kind of debt? Borrowing money to cover payroll taxes you fell behind on or to patch short-term gaps in day-to-day expenses. That’s digging a hole that gets harder and harder to climb out of.
The good kind of debt? Funding that positions your business to expand — buying equipment that generates revenue, investing in a new location, or hiring people that bring in more business.
How to avoid this mistake:
Before borrowing, sit down with your CPA to review your cash flow and repayment ability.
Make sure your financials are up-to-date before you apply for a loan — lenders want to see clean records.
Have a plan for how the debt will create more revenue, not just cover old mistakes.
Pulling it All Together
If you recognized yourself in any of these mistakes, you’re not alone. Most small business owners weren’t taught this stuff — they had to learn the hard way. But you don’t have to.
Here’s the bottom line:
Don’t wait until tax season to get advice.
Don’t make decisions with messy books.
Don’t let fear (or misuse) of debt keep you stuck.
Growth isn’t about doing more — it’s about doing the right things with clarity and strategy.
Final Thoughts
At Grable CPA & Company, we believe small business owners deserve more than once-a-year tax prep. They deserve year-round guidance, proactive planning, and someone in their corner who actually explains the “why” behind the numbers.
If you’re ready to stop guessing and start growing, let’s build your playbook together.
