1. Using the Default Chart of Accounts Without Customizing It
What happens: Beginners accept the built‑in accounts and end up with categories they don’t need and missing ones they do.
Why it matters: Reports become confusing, and transactions get miscategorized.
2. Mixing Personal and Business Transactions
What happens: Users import everything from their bank and don’t separate personal spending.
Why it matters: Books become messy, tax prep becomes painful, and reports lose accuracy.
3. Not Understanding Double‑Entry Accounting
What happens: They enter everything as “Income” or “Expense” without choosing the correct offset account.
Why it matters: Balances look wrong, and the books don’t “balance” the way GnuCash expects.
4. Importing CSV or OFX Files Without Cleaning the Data First
What happens: Duplicate transactions, wrong dates, missing payees, or incorrect splits.
Why it matters: Fixing imports takes longer than doing it right the first time.
5. Ignoring Opening Balances or Entering Them Incorrectly
What happens: They skip the opening balance or put it in the wrong account.
Why it matters: Accounts never reconcile correctly, and reports look off from day one.
6. Not Reconciling Accounts Regularly
What happens: Users rely on the register balance instead of reconciling to the bank.
Why it matters: Errors pile up, and they lose trust in their numbers.
7. Misusing Equity Accounts
What happens: Beginners treat Equity like a catch‑all or ignore it completely.
Why it matters: Owner draws, contributions, and retained earnings get muddled.
8. Forgetting to Record Sales Fees (Etsy, PayPal, Stripe, etc.)
What happens: They record gross sales but forget the fees.
Why it matters: Income is overstated, and expenses are understated — a tax nightmare.
9. Not Using Accounts Payable or Accounts Receivable Correctly
What happens: They enter invoices but don’t apply payments properly.
Why it matters: A/R and A/P reports show incorrect balances, making it look like customers still owe money.
10. Overcomplicating the Setup Too Early
What happens: Beginners create too many accounts, too many splits, or try to mimic QuickBooks.
Why it matters: GnuCash becomes overwhelming, and they give up before they get comfortable.