Have you ever felt the following when it comes to your bookkeeping: overwhelmed, stressed, frustrated, or completely lost??? If you answered yes to any of these, then you are not alone. I hear time and time again how bookkeeping is something you know you have to do, but it is the last thing on your list that you WANT to do. You put it off to the last minute, and you may even do your bookkeeping solely out of fear of being chastised by your tax accountant! (Trust me, I’ve heard it all).
If any of this resonates, then this blog post is for you! I am here to tell you about 7 ways you can simplify your bookkeeping, TODAY!
You’ve probably heard this advice many times before, but it truly is one of the simplest ways you can do to make your life easier when it comes to bookkeeping, and it’s easier than you think to get set up!
By setting up a separate business bank account, you can save countless hours of tracking down expenses and deposits. This is because all of your business activity can be tracked down to just ONE account!
Your options for getting started are simple:
One of the keys to simplifying your bookkeeping is to be CONSISTENT with how/when you actually do the work. And if you keep up with the tasks on a regular basis, it is quick and painless.
Here’s how to get started:
By showing up consistently in your bookkeeping, this will not only give you the confidence that you are taking care of your finances, but it will make running your year-end reports for tax time a breeze.
The key here is consistency. Having one central location that you can go for all of your business finances will simplify your preparation for tax time.
When picking an Accounting system, do a little bit of research before diving in to make sure it is the best fit for where you are in your business. Some things to consider are:
The typical recommendations I make to business owners for Accounting systems can range from:
This can be something as simple as a shared drive like DropBox or Google Drive, a folder on your desktop or even using a sophisticated receipt capture software like Dext or the built-in receipt function in QuickBooks Online.
Keeping all of your receipts in one place will make it a breeze when it comes to tax time, so taking that extra 30 seconds to file a receipt will save your hours of headache at the end of the year.
Whether you’re using a spreadsheet or a sophisticated Accounting tool, consistent categorization of your expenses is key. This will help streamline your year-end tax reporting because you will have consistent buckets of expenses to give to your tax accountant.
Brainstorm a list of all of your regular business expenses and put them into high-level categories that are easy to understand (both for you and your tax accountant). There’s no need to get fancy or overthink this. Keep the list to 20 or less and stay consistent!
Automation is everywhere these days and can save you tons of valuable time with menial redundant tasks. Spend some time thinking about your business systems ecosystem and how you may be able to automate some of that workflow into your accounting system.
A couple examples of simple automation could be:
Of all of the ways to simplify your accounting, this one is probably the most important.
Recognize that this may not be your most favorite task, and give yourself grace for not knowing everything there is to know about it. At the end of the day, it’s not your job to know everything about it! That’s mine!
If you’d like to learn more about how TulaBooks can help you with streamlining your unique bookkeeping needs, don’t hesitate to reach out for a quick Discovery Call. We can chat about YOUR business and how simplified bookkeeping can bring you peace of mind with your numbers and your business as a whole.
So, let’s chat!
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