By PB&J Strategic Accounting – Helping Jacksonville & Clay County businesses keep their books clean and stress-free
Introduction: Why QuickBooks Can Be Tricky
QuickBooks Online (QBO) is a fantastic tool for managing small-business finances, but it’s not always as simple as it looks.
Many entrepreneurs dive in without formal bookkeeping training, and that’s where costly mistakes creep in.
Messy books don’t just cause stress at tax time. They can affect cash flow decisions, lead to compliance headaches, and even hurt your chances of securing a loan or line of credit.
Below are the 7 most common mistakes we see at PB&J Strategic Accounting, plus simple ways to fix them before they become major problems.
1. Mixing Personal and Business Expenses
The mistake:
Swiping the business debit card for groceries or using the personal card to pay a vendor.
Why it matters:
Blending transactions can make it harder to see your true business profit, complicates taxes, and can raise red flags with lenders.
The fix:
- Keep a separate business bank account and credit card.
2. Skipping Monthly Bank Reconciliations
The mistake:
Trusting that QuickBooks matches the bank because the transactions look “about right.”
Why it matters:
Unreconciled accounts can hide duplicate entries, missing transactions, or fraud.
We’ve seen businesses discover thousands in errors, months late.
The fix:
- Reconcile every account on the Balance Sheet monthly.
- Use QBO’s Reconcile tool to match each statement line.
- Investigate any difference immediately rather than carrying it forward.
3. Mis-Categorizing Income and Expenses
The mistake:
Dumping everything into “Miscellaneous” or using the wrong expense account.
Why it matters:
Accurate categories help you understand profitability by project, know your deductible expenses at tax time, and make informed decisions.
The fix:
- Review yourChart of Accounts and merge duplicates.
- Use consistent naming — for example, don’t have both “Office Supplies” and “Office Expense” unless there’s a purpose.
- Work with your accountant to align categories with your tax return.
4. Ignoring Accounts Receivable (Unpaid Invoices)
The mistake:
Sending invoices but never following up when they’re overdue.
Why it matters:
Unpaid invoices tie up your cash flow and can create headaches at year-end when income doesn’t match the work performed.
The fix:
- Turn on Automatic Reminders in QBO.
- Review your A/R Aging Report monthly.
- Apply customer payments as soon as they’re received to avoid duplicate “open” invoices.
5. Setting Up Sales Tax Incorrectly
The mistake:
Not collecting sales tax on taxable items or using one flat rate for multiple counties.
Why it matters:
Florida’s state and local sales-tax rules can be complex. Errors often result in penalties or interest.
The fix:
- Use QBO’s Automated Sales Tax feature and ensure your tax settings reflect the right jurisdictions (Clay County, Duval, etc.).
- File and pay sales tax by the state’s due dates to avoid fines.
6. Skipping User Permissions and Backups
The mistake:
Giving every team member full access or relying only on the cloud copy.
Why it matters:
Excess permissions can lead to accidental changes or even fraud, and while QBO is cloud-based, exporting a backup is still a good safeguard.
The fix:
- Assign the minimum level of access needed for each user.
- Export a monthly backup (Settings → Export Data) for peace of mind.
7. Waiting Until Tax Season to Clean Up
The mistake:
Piling up unreconciled transactions all year and scrambling in March or April.
Why it matters:
Late clean-ups lead to rushed reports, missed deductions, and higher CPA fees.
The fix:
- Review your books monthly or quarterly.
- Use your P&L and Balance Sheet throughout the year to guide business decisions, not just for taxes.
Local Expertise Matters
Small-business accounting isn’t one-size-fits-all. A Jacksonville contractor’s bookkeeping challenges differ from a local retail shop.
At PB&J Strategic Accounting, we help Clay County businesses clean up their QuickBooks files so they can focus on growth instead of spreadsheets.
Ready to stop fighting with QuickBooks?
Schedule a free consultation with PB&J Strategic Accounting today.
We’ll review your books, fix any issues, and set you up with smooth systems so you’re always audit- and tax-ready.
https://pbjsa.com/contacts/