{"id":87182,"date":"2023-01-20T21:29:07","date_gmt":"2023-01-20T21:29:07","guid":{"rendered":"https:\/\/businessyield.com\/?p=87182"},"modified":"2023-01-20T22:41:28","modified_gmt":"2023-01-20T22:41:28","slug":"the-busy-entrepreneurs-guide-to-bookkeeping","status":"publish","type":"post","link":"https:\/\/businessyield.com\/education\/the-busy-entrepreneurs-guide-to-bookkeeping\/","title":{"rendered":"The Busy Entrepreneur\u2019s Guide to Bookkeeping","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

Are you a busy entrepreneur who loves spending more time growing your business and less time on mundane activities like bookkeeping? If so, this guide is for you! Bookkeeping doesn’t have to be overwhelming or take up too much of your precious time.<\/p>

Here we’ll discuss optimizing your workflow while ensuring accuracy in the numbers, a balancing act that all busy entrepreneurs should understand and strive towards.<\/p>

This guide is specially written for non-accountant entrepreneurs who are super busy. It provides simple, easy-to-follow instructions on managing your books, from setting up an effective record-keeping system to completing accurate financial reports.<\/p>

So if you want hassle-free bookkeeping processes and insights into improving them, read on!    <\/p>

Decide Which Bookkeeping Method You Will Use<\/span><\/h2>

When it comes to keeping track of your finances, there are two distinct methods you can choose from: single-entry and double-entry.<\/p>

Single-entry involves recording transactions as they occur in one single ledger, while double-entry requires recording debits and credits across at least two ledgers.<\/p>

When deciding between the two record-keeping techniques, consider the level of complexity that needs insight into your financial transactions.<\/p>

Double-entry records more information regarding your economic activity, making it ideal for businesses with significant financial activity. Meanwhile, single-entry is a more straightforward method of recordkeeping, typically best for individuals tracking their finances.<\/p>

No matter how you go about it, choosing a consistent method for recording financial data is essential for understanding and reporting your economic performance over time.<\/p>

Stay On Top of Taxes by Creating Separate Business Accounts<\/span><\/h2>

Keeping separate accounts is a good habit and makes filing taxes much more straightforward. In addition, by having organized documentation of all financial information readily available, tax authorities such as the Internal Revenue Service (IRS) can quickly review the records if needed.<\/p>

This significantly reduces the time between gathering information and ensuring everything on your tax forms is correct.<\/p>

The most common business account includes a checking account for day-to-day banking transactions, a savings account for storing funds in a low-risk way and accruing interest over time, and a merchant account for accepting customer payments.<\/p>

Each type of account has its own set of requirements and also offers different levels of security to protect your organization’s finances.<\/p>

In addition, separate accounts offer peace of mind knowing you won’t have to scramble for last-minute documents when it’s finally time to file a return.<\/p>

Besides separate accounts, it is also important to become familiarized with any additional local regulations related to financial matters, depending on where you operate from, such as capital requirements, etc. So inform yourself accordingly before taking action lest fines or penalties arise due to non-compliance.<\/p>

Keep Your Financial Reports Secure<\/span><\/h2>

Keeping records secure and protected is also essential to maintaining accuracy in bookkeeping. Consider taking the necessary steps to organize data into easily accessible systems so bookkeepers can access documents quickly and efficiently.<\/p>

With the rise of cloud-based solutions, automating these processes can be done much faster and easier than ever.<\/p>

Cloud-based accounting software is a powerful tool that enables users to securely store their financial information in the cloud and access it from anywhere at any time. So no matter your location, you’ll always have access to up-to-date information essential to accurate bookkeeping.<\/p>

Furthermore, since all data is saved in the cloud environment, users don’t need to worry about backing up or losing information.<\/p>

Ultimately, cloud-based accounting software is invaluable for those looking to save time and money when creating and updating their budgets.<\/p>

<\/a>Create a Budget<\/span><\/h2>

Creating a budget is the first step to staying on top of your finances. A budget lets you track your income and expenses to know exactly where your money goes each month.<\/p>

It also helps you create goals that will help ensure that your business remains profitable.<\/p>

When creating a budget, be sure to include the following:<\/p>