At Bilyk Financial, we work with entrepreneurs across Alberta and beyond to turn reactive money management into proactive strategy, helping business owners build wealth and protect what they’ve built. In this article, we’re breaking down five of the most common and costly financial mistakes business owners make, plus what you can do to avoid them.
Financial Mistakes #1: Mixing Business and Personal Finances
You might think it’s harmless to use one account for everything, until tax season arrives and you’re drowning in receipts, missed deductions, and accounting nightmares.
Why it’s a problem:
- You’ll lose track of deductible business expenses.
- It complicates your bookkeeping (and likely annoys your accountant).
- It opens you up to personal liability risks.
The fix:
Open separate business banking accounts and credit cards. Pay yourself a salary or dividend through the proper channels. This one change makes year-end filings easier and keeps CRA happy.
Financial Mistakes #2: Not Having a Tax Strategy
Too many entrepreneurs take a “we’ll see what we owe at year-end” approach. But that’s not a strategy, that’s a gamble.
Why it’s a problem:
- You could be overpaying taxes or missing opportunities to defer them.
- You’re not structuring income efficiently (e.g., salary vs. dividends).
- Major purchases or growth plans may not be optimized tax-wise.
The fix:
Work with a Certified Financial Planner (CFP) and tax professional who understands Canadian business tax law. We help you:
- Build tax-efficient compensation plans
- Time income recognition strategically
- Maximize deductions (yes, even that home office or vehicle use)
You work hard for your business, your money should work smart for you.
Mistake #3: No Exit Strategy
Whether you want to sell, retire, or pass it on to your kids, exiting your business takes years of planning, not just months. Unfortunately, many business owners don’t think about it until they’re burnt out or forced to make a quick decision.
Why it’s a problem:
- You might sell below value.
- You could face a large, unexpected tax bill.
- Family and employees might be left in the lurch.
The fix:
Start succession planning now, not later. Whether that’s building value for a future sale, creating a buy-sell agreement, or funding a smooth handoff with life insurance, we help you prepare for success after your business.
Mistake #4: Not Protecting Your Most Valuable Asset, You
If you’re the driving force behind your business (and most entrepreneurs are), what happens if you can’t work due to illness or injury?
Why it’s a problem:
- Your business may stop generating income.
- Your personal finances could collapse along with it.
- Your family could be forced to cover business liabilities.
The fix:
Protect yourself with:
- Disability insurance tailored for business owners
- Critical illness coverage
- Buy-sell insurance to cover transitions in ownership
- Key person insurance if you rely heavily on certain team members
You wouldn’t run a machine without a safety switch, you shouldn’t run a business without financial protection.
Mistake #5: Neglecting Retirement & Wealth Building
Many entrepreneurs pour everything back into their business, which is admirable… until you’re 65 with no savings and no one to buy the company.
Why it’s a problem:
- Your retirement may be entirely dependent on a successful exit.
- You may miss out on years of compounding investments.
- Your business isn’t guaranteed to fund your future.
The fix:
Start investing outside your business. We can help you:
- Build personal and corporate investment portfolios
- Use tax-efficient retirement savings tools (like RRSPs, IPPs, or holding companies)
- Design a plan that balances business growth and personal wealth
You’re already an entrepreneur, we’ll help you become an investor too.
Leverage Corporate Structure the Smart Way
Incorporating? Running multiple businesses? Holding real estate? There are big opportunities (and pitfalls) when it comes to corporate structure and tax strategy.
We help you navigate:
- When to incorporate (and how to do it tax-efficiently)
- Corporate-owned investments vs. personal
- Holding companies and estate freezes
Smart structuring can save you thousands now and protect millions later.
Ready to Level Up Your Business Finances?
At Bilyk Financial, we go beyond the basics. Our team works exclusively with business owners who are ready to:
- Build real wealth
- Protect their income and assets
- Exit their business with confidence
- Create a financial future that works for them, not the other way around
Whether you’re just starting out or 20 years in, our tailored portfolio management, tax strategies, and estate planning are built around your business goals and personal dreams.
Let’s Talk
Get a trusted advisor in your corner starting today.
📧 Email: hello@thebilykteam.ca
📞 Call: 780-632-6770
🌐 Visit: https://bilykfinancial.com