Take
Control of Your Biz Bookkeeping in 10 Simple Steps
Hi!
This is Holly from Accounting SPOT :) I am so excited to be here with Kelly
today! I am an Accountant and I love simplifying bookkeeping for small business
owners. Having had a stationery shop on Etsy in the past, and working with many
small business owners (on and off Etsy) I've become familiar with the trials,
tribulations and concerns of taking transactions and creating useful financial
data from them.
I
think just getting started is often a huge part of the battle. Today I want to
share with you, 10 steps that will help ease the pain of small business
accounting. So! Lets get started:
1)
Know the very basic.
It might go
without saying...but then again it might not.
Revenue - Expenses = Profit
2)
Separate your business funds from your personal funds.
Bank, PayPal & Credit cards. The books are SO much easier to
balance when there are only related transactions to deal with. This is not a
requirement for Sole Proprietors, but I highly suggest it.
3)
Downloading detail is your friend.
Etsy, PayPal and probably your bank and credit cards have the
option to download transaction detail in to excel and/or QuickBooks. USE THIS
OPTION! The less data entry you have to do, the more time and accuracy you gain.
4)
Keep your paper (and computer files) organized.
You don't need to enter your transactions in to an accounting
program daily. But, if you keep all the information organized in between entry
points, entry will go much smoother.
5)
Accounting software: Start simple...& free.
Start with the free versions and work your way up as your business
grows. Some of the options I endorse (and work closely with, so feel free to
contact me if you have questions):
6)
Use the Schedule C as a guide for your expense
categories.
It is not
the end-all, be-all of expense categories, but it is a great starting point.
Use these categories and then add in your own subcategories as necessary for
your business.
7)
Reconcile your accounts.
Doing this
assures you know what is coming and going from your bank/PayPal accounts. It
verifies that all data is included and the amounts are accurate.
8)Surround
yourself with like minded entrepreneurs.
We live in a unique entrepreneurial world. Finding communities of other
micro business owners gives us a good level of support. Not only for general
business, but even for accounting based questions too! It is helpful to know
what others in a similar situation would do. I enjoy the Etsy
business Team, the forums on Accounting
SPOT and even twitter.
9)
When in doubt, research the answer.
Just be sure you are using a reliable resource when doing your
research. Some that I use often are:
The QuickBooks Community Forum (answers to many
questions beyond just QB)
The Small Business
Administration
Business.Gov
10)
Review and use.
After
taking the time to create accurate financial reports, be sure to USE them!
Financial reports are the basis of sound business decisions. Knowing the health
of your business allows you to make good choices for your business' future.
Accountancy is an important function of an organization. An accountant has to ensure that business firms and individuals are keeping good records and paying taxes properly and on time. Accounting comprises of four major fields including public, management and government accounting, as well as internal auditing.
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