Common mistakes sole proprietors make

Here are the 5 most common (and costly!) mistakes toiminimi entrepreneurs make—and how to avoid them:

1. Mixing personal and business finances

• Using the same bank account or card for both personal and business expenses makes bookkeeping harder and you may fall behind on taxes due to not having any reserves to pay them.
  Fix: Open a separate business bank account and always use it for business-related income and costs.
  
  

2. Missing VAT registration or reporting

• If your turnover exceeds €20,000/year, VAT registration is mandatory. Missing it—or reporting VAT late—can lead to fines.

  Fix: Monitor your income and register for VAT as soon as needed. Use accounting software (like Procountor) or an accountant to stay compliant.
  
  

3. Not reserving money for taxes

• Many toiminimi owners forget to set aside money for income taxes and VAT. Come tax season, this leads to stress—or worse, debt.
  Fix: Estimate your taxes monthly and set aside 20–30% of your income into a separate savings account.
  

4. Forgetting YEL insurance

• If your self-employed income is over €9,208.43 (2025), YEL insurance is mandatory. Skipping it can affect your pension, sickness benefits, and even maternity/paternity leave.
  Fix: Contact a pension insurance company (like Elo or Varma) and get covered early.
  
  

5. DIY bookkeeping without know-how

• Mistakes in bookkeeping, missed deductions, or late filings can result in tax penalties or lost money.
  Fix: If you're unsure, work with a bookkeeper who understands toiminimi needs. It saves money in the long run.

Running a business should bring freedom, not financial stress. Avoid these common traps and build a more stable, profitable future.

Need help with your toiminimi bookkeeping?

Let Accelta make your finances stress-free and hassle-free. Contact us today!