Mom life is extremely busy - right?! Between taking care of the kids and the normal household necessities, you barely have any time for yourself. Add running a business on top of that, and the time you have available has pretty much gone to zero. Thankfully, some things in life can be made easier in order to save you time. One of these things is bookkeeping for your business.
We know that learning a new skill also adds to the amount of time you need in a day, so instead of having you take a full course on accounting, we have prepared some quick tips on bookkeeping basics for the #MomBoss.
Choose a Bookkeeping Software
One of the very first steps for getting your bookkeeping going is a good software. You will want to choose an easy-to-use system that allows you to code income and expenses, reconcile your accounts, and provide you with monthly reports. If you are just starting your business, check out Wave. It is free and pretty intuitive to use for service-based industries.
As your business begins to grow, you will want to upgrade to more robust (but still super user-friendly… we promise!) accounting software. Quickbooks Online is our go-to recommendation. They offer a variety of plans so you can pick which one is right for your company. It costs a monthly subscription fee but is SO worth it offering customized reports, sale tax and 1099 tracking, and more. These are features you will want available as you grow that business!
Separate Your Bank Accounts
GOLDEN RULE! No matter how big your business is, you should always separate your business bank account from your personal bank account. Even if you don’t use a bookkeeping software, at the very least you will have a separate register of all business-related transactions in one place.
We recommended having a dedicated business checking account from the very beginning. And if your business is already up and running, it isn’t too late to separate your finances now. If you are a sole proprietor, you can even just open up a new checking account under your own name and use it strictly for your business finances.
All business related income and expenses should flow through this account, and this account only!
Keep Your Receipts Digitally
Filing receipts is probably the most yawn-inducing aspect of bookkeeping - but necessary for tax purposes. That’s why we advise taking it digital. Keeping your receipts in a physical file can get really messy and disorganized. Instead, snap a photo on your phone or save the PDF attachment emailed to you, and then simply upload to your preferred cloud storage folder.
Not sure which platform to choose? Take a look at Google Drive or Dropbox. You may be already using one of these for your business anyways! We like to file receipts by year and month.
Block out Bookkeeping Time
Has anyone else heard of block scheduling? We love it as it helps us focus on specific tasks at a designated time - like taking care of the bookkeeping tasks.
Set aside one time each month to work on coding transactions, reconciling accounts, reviewing reports, and filing receipts. You will feel at ease knowing that your one-hour block of time has saved you that headache during tax time.
Keep it Simple
The biggest advise we can give is to keep it simple. Bookkeeping may seem like it is super complicated, but it doesn’t have to be! The simpler the system you are using, the more likely you are to keep it up long-term.
Automating tasks like invoice follow-ups, letting clients pay through invoices directly, and using the QuickBooks Online bank rules to automatically code recurring expenses can save you even more time to spend on other areas of the business.
By utilizing these tips, you will have your business bookkeeping flowing smoothly in no time. And maybe even squeeze in some extra mom time!
WRITTEN BY ADRIENNE ZIMBRO: ACCOUNTANT, CONTENT CREATOR, & ENCOURAGER