- Allows you to monitor the progress of your business
- Helps you prepare your financial statements
- Identifies sources of income
- Keeps track of expenses
- Tracks your business property
- Assist in preparing your business tax return
- Fulfills burden of proof (you must be able to prove certain elements of expenses to deduct them on your tax return)
What is bookkeeping?
- Gathering and organizing information from business transactions
When to do bookkeeping?
- Every day (take 15 minutes and keep it current)
How to keep up the books?
- Know the basics
- Learn how double-entry bookkeeping works (both sides are equal)
- Understand your chart of accounts (categories)
- Know how to read your reports (financial statements)
- Choose a software application and USE IT!
- Quickbooks Online
- Gusto Payroll
- Ask questions
- If you do not understand something in your books, ask. As the owner it is your responsibility to know how your business works.
- Get help when you need it
- When you need some extra help, get it