Mastering DIY Bookkeeping:Your ultimate guide
Hey there, fellow entrepreneurs! If you're diving into the world of DIY bookkeeping, you've come to the right place. Managing your own books might seem daunting at first, but trust me, with a little organization and the right tools, it can become second nature. Plus, there's nothing more satisfying than having a clear picture of your business's financial health. So, grab a cup of coffee, and let's get started!
Daily Tasks: Start Your Day Right
Record Transactions
Every day, take a few minutes to categorize all your income and expenses. Trust me, this small habit makes a massive difference. Attach receipts to transactions in your bookkeeping software—your future self will thank you come tax season.
Review Bank Accounts
Check for duplicate transactions, unwanted subscriptions, and any discrepancies. One time, I caught a sneaky subscription I didn't even remember signing up for. It pays to be vigilant!
Monitor Cash Flow
Keep an eye on your daily cash flow. Ensure you have enough funds for upcoming expenses. This step saved me from a couple of sleepless nights when unexpected bills came up.
Weekly Tasks: Stay On Top of Things
Review Invoices
Invoice customers promptly and follow up on overdue ones. These weekly check-ins ensure you're not leaving money on the table.
Pay Bills
Paying bills on time avoids late fees and keeps your vendors happy. Record these payments in your bookkeeping software to stay organized.
Expense Management
Upload receipts to store digitally. I use QuickBooks Online's receipt snap feature—it's a game-changer!
Payroll (if applicable)
Submit and record payroll according to your schedule. Verify that you have sufficient funds before processing.
Monthly Tasks: Dive Deeper
Bank Reconciliations
Reconcile your bank statements with your bookkeeping software. This ensures all transactions are accounted for and helps resolve any discrepancies.
Review Reporting
Run and review the Profit & Loss, Balance Sheet, and cash flow reports. Compare these against prior periods and industry benchmarks. A few months ago, I found a trend that helped me trim some unnecessary expenses.
Prepare/Submit for Tax Filings
Pay and file payroll and sales taxes. Collect and organize all tax documents. I like to transfer 30% of net income to a savings account for taxes—better safe than sorry!
Update Inventory
Conduct inventory counts and update records. Even if you're a small business, this helps you stay on top of what you have and what you need.
Quarterly Tasks: Strategic Check-Ins
Review Reporting
Run reports and thoroughly analyze your performance. Calculate and pay estimated taxes.
Evaluate Budget vs Actuals
Compare your actual performance against the budget. Adjust as necessary to stay on track.
Meet with Accountant
Continue tax planning and review reports. Calculate estimated tax payments. These meetings are invaluable for strategic planning.
Annual Tasks: Wrap Up the Year
Year-End Financial Review
Run thorough reports and analyze your performance. Review your budget vs actuals and create a new budget for the upcoming year. Close the books once all transactions are recorded and accounts reconciled. Find ways to automate processes—efficiency is key!
Prepare for Tax Filings
File 1099's, gather and file your annual tax return, and meet with your tax accountant to finalize everything. This step ensures you're compliant and ready for the next financial year.
Interested in a Quarterly DIY Bookkeeping Check-In?
For those of you who prefer a fresh set of eyes to review your books every quarter, we've got you covered. Book a discovery call today!
info@aspire-consultingllc.com
Happy bookkeeping, everyone! Let's keep those finances in check and watch our businesses thrive.
