Top 10 Bookkeeping Mistakes Made by Small Businesses

9. Not Implementing Adequate Internal Controls

If proper checks and balances aren't implemented in a business's accounting system, bookkeepers may have opportunities to commit fraud and embezzlement. Losses from internal fraud can significantly cripple a small business, or even lead to bankruptcy.

The best way to guard against embezzlement by a bookkeeper is to implement solid internal financial controls. This includes segregating financial duties so that no one employee has unfettered control of every aspect of the business's finances. If it isn't practical for you to hire more than one bookkeeper, you should personally oversee the bookkeeping work and keep tabs on it yourself.