Sitting down after a long day of work for your business, you remember that you need to enter the receipts from the day into your spreadsheet that you keep. Then you remember that you also need to enter in the receipts from the week prior. You may have lost a receipt along the way, but you think you remember the general amount you paid. See how messy this could become?
Don't get me wrong, I LOVE SPREADSHEETS. I'm an accountant, after all. But keeping track of all your business expenses on a spreadsheet only works if you meticulous and consistent. And as much as most of us business owners want to remember ALL our expenses and income, there are so many other things happening that need our attention.
So ditch the spreadsheet, and start using accounting software. It can connect to your business bank accounts and credit cards, Square, and your PayPal. So that means you do not have to track your own expenses and income. Your software will do it for you, you just need to know how to categorize it. I still would keep the receipts from the year, just in case you are audited by the IRS. Other than that, you can go paperless!
Another perk of using accounting software: you get financial reports. Categorizing your expenses and reconciling your accounts every month allows you to pull financial statements that show you the health of your business.
Don't know which software to use? My software of choice is Quickbooks Online. There is even an app that allows you to do your books on the go. But if you want to go a different direction with your software, there are plenty of options!
Realizing it's time to invest in an accountant? I'm happy to help. Feel free to check out my website and fill out a contact form, or email me directly: email@example.com
Willow Creek Financial Services
Buy from a Black Woman Contributing Writer
Lauren formed Willow Creek Financial Services with the purpose of helping you, the small business owner, have peace of mind and confidence about your financials. With an accounting degree and years of accounting experience behind her, she is here to help you grow your business.