Running a small business is no small task. From managing cash flow to staying compliant with tax laws, one wrong financial move can impact your entire operation. At Mehta & Rajpurohit, we’ve seen several businesses make the same costly errors — and the good news is, they’re all avoidable.

Here are 7 common financial mistakes small businesses make (and how you can avoid them with the right guidance).

1. No Proper Bookkeeping System
Many businesses still rely on spreadsheets or scattered receipts.
Solution: Use a structured accounting system or get professional MIS setup with our help to keep things organized and audit-ready.

2. Missing Compliance Deadlines
GST, TDS, ROC filings — missing deadlines = penalties + reputation damage.
Solution: Let us automate your compliance calendar and filing process.

3. Not Budgeting for Taxes
Spending all your revenue without setting aside funds for tax liabilities is risky.
Solution: Quarterly tax planning ensures you’re prepared — not surprised.

4. Blending Business and Personal Finances
Using one bank account or credit card leads to confusion during audits.
Solution: We help you separate accounts, assign proper expense categories, and build clean financials.

5. Ignoring Internal Audits
Not reviewing your own processes can lead to unnoticed leakage or fraud.
Solution: Conduct periodic internal or system audits for health checks.

6. Delaying Legal Structuring
Operating as a sole proprietorship when your revenue is growing? Risky.
Solution: Switch to LLP or Private Ltd. for legal protection and tax efficiency.

7. Not Seeking Expert Advice
DIY tax filing and compliance can be dangerous when laws change often.
Solution: Partner with a CA who stays updated — like Mehta & Rajpurohit.

Conclusion:
Avoiding these mistakes isn’t just about compliance — it’s about building a financially sustainable business. And the best part? You don’t have to do it alone.