3: What Do I NEED To Do My Own Bookkeeping?
Welcome to the second episode of our four-part series where we are diving into all the questions asked when you are deciding if you should do your own bookkeeping. In this episode, we talk about what you NEED to do your own bookkeeping. Do you have the right bank accounts and do you have a process set up? What will you use for a bookkeeping system? Do you have the appropriate knowledge of accounting to do your own bookkeeping? By the end of this episode, you will know what you NEED to do your own bookkeeping.
Is Doing Your Own Bookkeeping Right For You?
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Today’s episode is the second in our series where we will help you find out if doing your own bookkeeping is right for you. It isn’t right for everyone, but after listening to this series, you will have a good idea if it is a good fit for you. Listen in and find out what you NEED TO DO your own bookkeeping…
Welcome Back…today we are going to be diving into what is needed if you are thinking about doing your own bookkeeping.
First, you are going to want to have separate business and personal accounts. What does this mean?
This is going to save you A LOT of time since you will only need to record your business transactions.
If you are a corporation or LLC, you need to have your business and personal transactions separate from your business anyway.
You are going to need a process set up to do your bookkeeping. You are going to want to decide on things like:
- How are you going to record your transactions
- How are you going to store your receipts
- When will you do your bookkeeping
You are going to need a tool, or bookkeeping system. There are many options available and your first decision will be whether you want to do your bookkeeping manually with something like excel or a spreadsheet, or if you want to have a computerized software system such as QuickBooks, Xero or Wave. When looking into software, you will want to compare pricing and options. This will be a really important part of your bookkeeping and you will want to make sure you enjoy the bookkeeping system you are using or it will make doing your bookkeeping something you dread doing and will most likely put it off.
Some knowledge of accounting and finances will be helpful, but I promise you will learn more about all of this as you continue to do your bookkeeping. Most computer systems do all the back-end processing, so you don’t need to know the accounting concept behind what is going on…like the debit and credit that is happening behind the scenes, but it is important to have a general understanding of some important terms. Here are a few I thought would be good to quickly go over today...
Once you have a process and a system set up, you will be able to start recording your transactions. Like I mentioned above, you will need to enter or record all your money coming in and going out of your business. This includes your:
Invoices – to record sales to your customers
Bills – to record expenses
Automatic withdrawals – to record expenses
Personal Transactions – to record any draws or contributions to or from the business
Credit card transactions – to record additional expenses
Alright, to recap this episode,
If you are starting to consider doing your own bookkeeping, grab our FREE Guide on the 5 Essential Strategies For Stress-Free Bookkeeping. Go to FinancialAdventure.com/5Essentials to get your copy.
And…what’s at least one thing you will take away from this episode that will help your business succeed and grow your bottom line? Do you need to be held accountable? Join our PRIVATE Facebook and post your action item, we’d love to support you.