Plus, you know that every single transaction in your business account is business related. Instead of going through hundreds of transactions, searching for the 15 that actually have something to do with your business, those 15 transactions are waiting for you in your business account. While it sounds counter-intuitive, having separate accounts reduces the amount of work because you only review transactions in your business accounts. Keeping your business and personal account separate is CRUCIAL to keeping your bookkeeping manageable. You know that Offspring song that goes, “You gotta keep ‘em separated”? Get it stuck in your head now because that song should be your mantra for your business and personal bank accounts. Keep business and personal transactions separate
#FREELANCE BOOKKEEPING COMPANIES PRO#
Ready to jump into your bookkeeping? Here are my top three bookkeeping tips and how they’ve impacted pro freelancers just like you: 1. Or clients pay us the wrong amount…or not at all. Sometimes, funky things happen in our bank accounts and, if we’re not paying attention, they can cost us down the road.
And what’s the easiest way to miss tax deductions? By rushing through your bookkeeping the day before taxes are due. If you miss tax deductions, you run the risk of paying more in taxes. Tax deductions directly impact how much money you pay in taxes every year. Bookkeeping helps you keep track of all your vital tax deductions. BUT doing your bookkeeping, and doing it regularly, is for more than just taxes. You DO need to know how much money you made and spent (and in what deduction categories) when you file your taxes. Yes, bookkeeping is an important part of taxes. Wait, wait, I know this one! It matters for taxes, right? In other words, these are the bills, bills, bills that you have to pay to your contractors or vendors. How you keep track of your accounts receivable and accounts payable is also part of your bookkeeping.Īccounts receivable is the tracking of all of the money that other people OWE YOU, which will likely be your invoicing and payments systems.Īccounts payable is the tracking of all of the money that you OWE OTHERS. Just like Kelly and Michelle are integral parts of Destiny’s Child, so are the other two aspects of your bookkeeping: accounts receivable and accounts payable. This is the Beyonce of your bookkeeping: the most recognizable face and what most people think of when they hear the word bookkeeping.īut don’t be fooled. Income and expense tracking is recording and categorizing all the debits and credits in your bank accounts. There are three main parts that, when put together, makes a perfect harmony (and some killer dance moves). Your business’s bookkeeping is like Destiny’s Child.
It’s keeping track of all the money that comes in and goes out. What is bookkeeping?īookkeeping is the financial recordkeeping aspect of your business. And while it’s not the most riveting of subjects, getting to know your bookkeeping will seriously help you level up your tax and financial game. Ready to talk about bookkeeping now? Good, because bookkeeping is one of the most crucial, yet overlooked aspects of your business finances. It’s coarse and rough and irritating and it gets everywhere.” – Anakin Skywalker
Let’s talk about bookkeeping, shall we? No, you don’t want to? You’d rather watch the Star Wars prequels on repeat with epic lines such as…