If you shiver at the thought of managing piles and piles of your business’s finances, then you’re not alone.
Bookkeeping is the practice of collecting and organizing financial documents like invoices, receipts, payroll records, bank statements, and more. It can certainly be a tedious process, especially if you’ve never done it before for your small business.
Bookkeeping is crucial to managing a small business.
The goal of bookkeeping is to have a clearer view of how your business is doing financially. This gives you the necessary information to decide on how best to grow as a business, and where you can improve cash flow. It will also help you identify any possible issues in your revenue that you might be experiencing.
For visual learners, here’s a helpful video from the financial software company Bench Accounting:
There’s are a bunch of great bookkeeping software out there.
Bookkeeping requires that you keep track of every expense you have - from your shipping orders, to the coffee meeting you just wrapped up. For that reason, it is best to look into a bookkeeping software. Here are some solid options:
- Quickbooks is the industry standard for bookkeeping software. Its user-friendly design and variety of available features make it a simple-yet-dynamic combination that is hard to beat. Features include:
- 24/7 chat support
- receipt capture
- integrations with PayPal, Shopify, and Square
- easily track income, expenses, invoices, payments, and inventory
- ○ gives estimates of project profitability
- starts at only $8/month
- Freshbooks is another great bookkeeping software, which comes at a higher price than Quickbooks because it tends to offer better services for freelancers and service-based businesses. Features include:
- sending out recurring invoices
- time tracking capabilities
- integrates with other business apps
- helpful, intuitive mobile app
- team collaboration tools
- double-entry bookkeeping
- starts at $15/month
- Wave is a great free option for business owners. It’s geared more towards freelancers and smaller-sized operations. Features include:
- invoice and transaction management
- automatic updating for bookkeeping
- accepts multiple currencies
- offers instant payouts
- free, with charges made for putting employees on payroll or accepting payments
This guide should provide you with everything you need to get started in bookkeeping! Don’t be afraid to come back to this as a reference to help you get started with keeping track of your business’s finances.
Trades.org is here to help your business succeed. Our tools will help you save time and money, understand the ins and outs of business management and spend your days providing exception services to your customers rather than marketing and office tasks. We’ve got your back with practical help managing and growing your business.