How to Bookkeep Like a Pro

(Or at Least, Like Someone Who Knows What They’re Doing!)

Wednesday October 23, 2024

Hey there, business dynamos and spreadsheet skeptics!

Whether you’re the type who thrives on numbers or breaks into a cold sweat at the sight of an expense report, it’s time to tackle the elephant in the room: bookkeeping. Yep, that crucial part of running a business that no one told you about when you had your “lightbulb” moment and decided to become an entrepreneur. Don't worry—I’ve got your back, and I promise, it’s not as terrifying as it sounds (no calculators will be harmed in the making of this blog post).

Step 1: Understand That It’s Not Just "Math Stuff"

Let’s get one thing straight: bookkeeping is not all about math. Yes, there are numbers involved, but they’re more of the "let’s keep track of things so we don’t end up broke and confused" type of numbers. Bookkeeping is like tidying up your finances—Marie Kondo-ing your money, if you will. It’s about organizing everything so you know what’s coming in, what’s going out, and, more importantly, what you’re left with at the end of the day (hopefully more than you started with!).

Step 2: Master the Art of Transaction Tracking (It’s Easier Than it Sounds!)

Imagine your business is a detective novel, and your bank statements are the clues. Every purchase, sale, and invoice is a little piece of evidence that needs to be tracked, categorized, and stored. Your job? Keep tabs on all those clues, because they’re the foundation of your financial story.

You can do this manually (old school with pen and paper), but let's be real—you've got better things to do, like, oh, I don’t know, actually running your business. So use some fancy tech! Accounting software like QuickBooks or Xero will do the heavy lifting and make sure you’re tracking your transactions without having to develop a permanent squint from staring at receipts all day.

Step 3: Bank Reconciliation (A Fancy Term for "Making Sure Your Bank Account Isn’t Lying to You")

Picture this: you’re checking your bank account, and the numbers don't match your records. Cue panic, right? Wrong! This is where reconciliation comes in. It’s just a snazzy word for comparing what’s in your accounting software with what’s in your bank account.

Think of it like when your friend swears they paid you back for dinner, but your Venmo tells a different story. Reconciling your books is simply making sure the story you’re telling (in your financial records) matches the story your bank is telling. Spoiler: one of them is probably right (and yes, it should be your bank).

Step 4: Categorize Like a Boss

Every transaction has a category. Some are straightforward: sales go under revenue, paying rent goes under expenses. Easy, right? But things get fun when you start wondering where to stick those random purchases. Is the pizza you bought for your team a meal expense or marketing? (Yes, team bonding counts!)

Think of categories as boxes for your transactions. You don’t want to throw everything into one big "miscellaneous" pile (that’s a recipe for chaos). Categorizing helps you see where your money’s going and, more importantly, where you can save. Yes, it’s possible to over-categorize, but as long as you’re not filing “morale-boosting donuts” under "Office Equipment," you’re probably doing fine.

Step 5: Invoicing Without Tearing Your Hair Out

Ah, invoicing. Everyone’s favorite part of running a business (said no one ever). It’s kind of like that annoying task you keep putting off, but it’s literally how you get paid, so it’s kind of important. The trick to good invoicing? Clarity. Make sure your invoices are clear, concise, and have all the right info: date, services, total amount, payment terms (e.g., “Please pay me so I can keep my lights on”).

And, hey, automation is your friend here too. Use your accounting software to set up recurring invoices so you don’t have to constantly remind clients that you exist and like to be paid on time.

Step 6: Know When to Call in Backup (a.k.a. Me!)

Here’s the thing: bookkeeping is manageable, but let’s face it—not everyone has time to be a numbers ninja. If your books start feeling like a monster that’s growing out of control, or if you’d rather focus on actually growing your business rather than sorting through invoices and receipts, that’s where I come in.

Bookkeeping doesn’t have to be scary, but it also doesn’t have to be your job. You didn’t start your business to be tied to spreadsheets all day. Let me do the number crunching while you do what you love—whether that’s building, creating, or just catching up on sleep (because, let’s be honest, who couldn’t use more of that?).

So there you have it—bookkeeping in a nutshell. Not so bad, right? Now get out there and start organizing those transactions like the financial guru you’re becoming!

Need help keeping your books straight? Schedule a FREE consultation with me by contacting me at 336-927-2785 or email at sarahfoster14@accuratebookssolutions.org, and let’s make your finances sparkle without the stress!