Ugh, finances. Amiright? If you are a creative like me, numbers aren’t always our strong suit and we sometimes can feel a little nauseated at the idea of it.
The good thing is that we can outsource it! Or…get tips from known experts! This is why I have invited Beth Ann, a bookkeeper and virtual assistant to step in and give us her top recommendations for small business owners and entrepreneurs!
Beth Anne is a Bookkeeper and Virtual Assistant from St. Augustine, FL. Beth Anne loves helping small businesses do the boring tasks so they can grow their businesses and do what they love! She also loves helping women understand what the numbers on their financials mean after going years of clients never looking at them. When Beth Anne isn’t working in her business she loves tackling one of her many Creative Endeavors from watercolor, Bible Journaling or Brush Calligraphy.
Without further ado, I introduce you to Beth Anne!
You started a business because you were passionate about your products and services. No one ever told you about all the boring administrative tasks you would have to do. But don’t worry, that is what I am here to help you with!
I know no one wants to talk about taxes, bookkeeping, or your business finances, but if you want to grow your business it’s important to have a good system and a way to track #allthereceipts. If you don’t know how much money your business is making or losing you may be going out of business before you know it. Bookkeeping for beginners can be daunting, but with the right tools and systems you will be just fine!
I have helped many clients go from a Net Loss to a Net Profit just by showing them how to read their financial statements and see where their business was bleeding money.
I have been a Bookkeeper and Quickbooks Pro advisor for over 10 years. I have worked with many different kinds of businesses and have helped them understand what their financial statements mean vs “that’s the thing you need to do your taxes.”
I want to help you understand the financial health of your business so you can have a successful business. Here are 7 Bookkeeping for Beginners Tips:
Open a separate bank account and credit card for your business. If you don’t do anything else do this! This is so important. This will make your bookkeeping so much easier. It will make your Bookkeeping easier by not having to remember if something was for business or personal.
Even if it’s just in an Excel spreadsheet. I know when you are starting out you don’t have the budget for Quickbooks or Xero but there are free programs like WAVE and Google Sheets. I even have a Google Sheets sample Expense Tracker you can download and use for your business when you sign up for my email list. Make a list of all the money you have coming in and all the money you have going out.
You must create a system for tracking your receipts. There are many apps out there to help with this. I personally love the app Auto Entry or HUBDOC because it pushes the receipts right to Quickbooks but you can also do something as simple as saving all the receipts into a dropbox or google drive file for each year and month.
Use MileIQ or a spreadsheet to track your business mileage. You want to be able to write off any business mileage at the end of the year so keeping track of your business driving is important. I really like the MileIQ app because your phone automatically detects when you are driving. Once a month I go in and delete all the personal drives and just keep the business drives. This will make it really easy come tax time.
Pick one day each week to categorize all your transactions and pay any bills that are not on automatic bill pay. Bookkeeping can be a very daunting task when you aren’t used to ever having to do it. If you keep putting it off before you know it it’s June and you haven’t done any bookkeeping for 2020. I pick one day each week to review all my transactions for the week and categorize them in my accounting system. While I am in there I pay any bills or credit cards that aren’t on autopay.
If you use Square or Stripe make sure you account for the fees. Most processors like Square or Stripe have a usage fee (a certain percentage of the sale). Make sure you are accounting for the total sale minus the credit card fees in your bookkeeping. Many people see a deposit for $93 and think that was the sale price, but more than likely it was a sale for $97 with a credit card fee for $4. You want to make sure your total sales numbers are accurate and we are accounting for any fees as expenses that we can deduct on our taxes.
There are SO many apps and subscription services out there. Many of them make our business easier to run. But there are times that we sign up for an app and then we never use it. Once a year I like to evaluate which subscriptions I am signed up with and see if I am still using them. If I am no longer using them, I cancel. If I AM using them, I evaluate if I should start paying yearly or monthly. You can usually save about 20% if you pay yearly. Black Friday is always a good time to review this as there are often a lot of deals to renew subscriptions at that time!
I hope these Bookkeeping for Beginners Tips were helpful for you as you start your business and continue to grow. I love helping entrepreneurs understand what their bookkeeping numbers and financial statements mean. To learn more about me and my business visit my website or catch me on social media!
A HUGE thank you to Beth Anne for stopping by and giving us this amazing information! I know it was incredibly helpful to me, and I’m certain you have found some good advice as well!
Follow along for more tips and advice from Beth Anne Bookkeeping!
Website: Beth Anne Bookkeeping
Facebook: Beth Anne the Bookkeeper
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Bookkeeping for Beginners