All of the clients we work with are on QuickBooks Online. They handle the books themselves on a day-to-day basis. QBO has significantly improved in the last 10 years. They’ve made it easy to stay on top of your numbers, regardless of the size of your company or your level of accounting knowledge.
There are desktop and mobile apps that even allow you to do your bookkeeping wherever you are. So, there are no more excuses!
How to Get Started with QuickBooks
The first thing to do is connect your business bank accounts and credit cards. Then, the program downloads the transactions for you. Next, you will categorize, in QuickBooks, what each transaction was.
For example, you should categorize $100 income as money you deposited into your bank account is income from a client or a reimbursement from another vendor. Or if that $100 charged on the credit card was for office supplies or more custom pop sockets, it should be labeled appropriately. While they’re both deductible business expenses, it does make a difference when you’re comparing your monthly and yearly spending in the office supplies and advertising categories.
When You Should Update Bookkeeping Records
Remember, it’s easier to categorize transactions a day or so after they happen, when your memory of the transaction is still fresh. Putting it off until you can sit down one chilly, January morning to do an entire year’s worth of bookkeeping is a cozy idea, but is a scary reality.
As an accountant, that’s nightmare fuel. Bookkeeping needs to be done regularly and often. This is the best way to ensure that your records stay accurate and continue to be useful for your business.
The other option is to hire a bookkeeper to do the work for you. This option is perfectly okay, but you should make sure that you’re setting frequent meetings with your bookkeeper to discuss the business and review the financials. The most important part of this goal is actually to spend time learning to understand your numbers and what they mean.