48. What You Need to Know Before You DIY Your Bookkeeping
August 9, 2019
This episode is brought to you by my bookkeeping strategy sessions. When it comes to your bookkeeping, you’re probably in one of three areas. Doing it yourself, outsourcing some or all of your bookkeeping to a professional or understanding what the reports mean and making better business decisions from that information. Each of these stages comes with different struggles and questions. I can help with all three. Bring your questions, and I’ll bring some solutions. To book one of these sessions, email me at firstname.lastname@example.org. Now, on with the show.
What You Need to Know Before You DIY Your Bookkeeping
Welcome back to the podcast!
Three things you need to know before you DIY your bookkeeping.
- You need to have a system set up or decide you’re going to create one. This could be that you start using QuickBooks or you open an excel document or you have pencil and paper ready. You need to have one dedicated place for your bookkeeping information and use it consistently. If you’re doing one month on this excel sheet and another on a totally different sheet and then you switch to google docs for another month and dabble in QuickBooks, then you’re not going to get the results you have to have. Make sure that you choose one system and stick with it. You can change systems, but you need to bring all of your information over when you do that and it can get kind of tricky.
- You need to know that you’re only tracking business expenses and business income. Hopefully, you have separate bank accounts for personal transactions and business transactions. That separation makes this process 100 times easier. Once a transaction hits your bank account, you have to assign an account to it. These accounts can be pretty basic like dues and subscriptions, bank service charges, travel, postage and so on. If you’re using an accounting program it will prompt you to do this. If you’re using something like excel or paper, then you’ll have to create this list for yourself. This list is called the chart of accounts and can definitely be customized to your business. You’ll need to know though that you have to assign each transaction to an account. It gets tricky if you have a purchase that goes on two different accounts. Make sure that you’re looking at the receipts for those things so you can separate the accounts properly.
- You need to know that you have to be consistent and get it done. This is by far the hardest part, in my opinion. Once you learn how to do your bookkeeping, it doesn’t change. You’re not constantly trying to figure out new things like you are with facebook algorithams or new marketing strategies or even learning new technology. Bookkeeping is a pretty consistent task. But that does mean that you have to set the time aside to actually do the work. A few things on how you can be more accountable to this is
- Join our facebook group! I’ll be posting information at the beginning of each month to help hold you and me accountable for getting our bookkeeping done.
- Set a reminder on your calendar.
- When you receive your bank statements in the mail, make it a point to sit down right then and do the task.
- If you don’t like doing it, then decide that it’s a necessary evil. You’ve probably experience this in other areas. I don’t always like eating salad, but it’s what’s good for me and I have to force myself to do it and be unhappy the entire time. If this is you, just know it’s going to be a chore and decide that you’re going to do it anyway.
- Hire it out. If you have an extra few hundred dollars each month, this is a great task to outsource so you don’t even have to think about it. I know this goes against what we’re talking about in this episode before you DIY your bookkeeping, but know that this is always an option.
I’d be honored to work with you. To get started, email me at email@example.com with the problem you’re having and we can discuss the best way to get to a solution.
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I would love to connect with you. You can find me on Instagram @lydia.miller.mba and always by email firstname.lastname@example.org.
So until next time, go, make it happen.