Let’s be honest, you didn’t go into business because you love the nitty-gritty details of bookkeeping. You went into business to make a difference, to change the world! Because of this, it is tempting to neglect the books and move on to more fun, creative, innovative parts of your business.
Not to worry! I did go into business because I love those details! Join me as I share my “Brilliant Bookkeeping Tips.” Follow these simple steps to keep your business bookkeeping, and finances from getting away from you!
#1 Keep business & personal accounts separate.
But wait, isn’t it all the same? Yes, and no. Legally, yes, you and your business (sole proprietorship, LLC) are considered one entity. However, the best accounting practice is to consider you and your business as two separate entities when it comes to bookkeeping. This includes credit cards, bank accounts, PayPal, and any other accounts you have.
The real benefit here is that you can really drill down into the details of your business when it is separate from your personal accounts. You will know exactly where money is coming from, and how it is being spent. This helps you spot trends, money drains, and areas where things are really going well. With this information, you can make great financial decisions that lead to growth and more profit. That makes it totally worth keeping business accounting separate!
I’ll be back tomorrow with tip #2!
P.S. Tip #6 is my favorite since it allows you to do what you do and see more profits.
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Equip Bookkeeping is a cloud-based bookkeeping service empowering businesses and nonprofits around their finances. I can help you make smart, confident decisions about your business.
Let’s take a look at the current state of your business together. Is it healthy? What could be improved, or focussed on to create more profit? Or maybe you’re just sick of doing the books?
Set up a free consultation with me today. This will allow us to get to know each other: you can share more about your business, ask your bookkeeping questions, get some great information about how you can manage your books with more ease, and possibly become an Equip client with a personalized financial plan for your success.