1. Mixing Business and Personal Expenses

One of the most common pitfalls for trades is running both personal and business expenses through the same account. That quick stop for fuel, a grocery run, or a last-minute supply store purchase can blur the lines. Why it matters: At year-end, sorting personal from business expenses is time-consuming and often leads to missed deductions. The IRS also views commingled accounts as a red flag. The fix: Open a dedicated business checking account (like Novo, popular among small business owners) and use it exclusively for work-related transactions. A professional bookkeeper can then cleanly categorize everything, ensuring you don’t leave money on the table.

2. Falling Behind on Invoices and Payments

Trades often run into cash flow crunches around the holidays. Clients may delay payments, or invoices might not even get sent out in the year-end rush. Why it matters: Unsent or unpaid invoices mean lost revenue, and slow cash flow can make it harder to cover payroll, parts, and year-end taxes. The fix: Establish a clear invoicing system—ideally automated—to make sure bills go out promptly. Using bookkeeping tools connected to platforms like QuickBooks or Xero can streamline this. A bookkeeper helps you track open invoices, send reminders, and keep cash flowing.

3. Ignoring Receipts and Records

For trades, receipts can pile up fast: parts, rentals, tools, even work boots. Many end up lost in the glove box, buried in a desk drawer, or tossed accidentally. Why it matters: Missing receipts means missing proof of deductible expenses. That translates to paying more in taxes than you need to. The fix: Stop relying on paper. Apps like Dext or Keeper let you snap a photo of a receipt on the spot. Partnering with a bookkeeper ensures every expense gets categorized correctly, so you maximize deductions.

4. Not Planning for Taxes Until It’s Too Late

Trades in Phoenix often push tax prep to the last minute, only to get hit with an unexpected tax bill. Why it matters: Without planning, you may owe more than you can comfortably pay. You also miss opportunities for smart deductions—like equipment purchases, vehicle mileage, or Section 179 write-offs—that could lower your liability. The fix: Meet with a bookkeeper before year-end to review your financials. With proper planning, you can make strategic moves (like buying needed equipment or pre-paying expenses) to reduce taxable income.

5. Overlooking Business Growth Opportunities

Many trades think bookkeeping is just about keeping score. But accurate, up-to-date books actually reveal insights that help you scale. Why it matters: If you don’t know which services are most profitable, where you’re overspending, or how your cash flow trends, you can’t make smart business decisions. The fix: Work with a bookkeeper who doesn’t just track transactions but also highlights trends, creates reports, and partners with your CPA for tax strategy. This way, you go beyond compliance and actually use your numbers to grow.