In today’s episode, I am telling you what I think is the biggest mistake entrepreneurs are making when it comes to their business bookkeeping. I bet you will be surprised to hear what it is. Here we go….
#1 BIGGEST mistake I think entrepreneurs are making is not doing their books at all or doing them incomplete. For real!! We cannot, as busy mamas, expect ourselves to remember every financial transaction that has happened throughout the year in our business. My brain does not work that way and I am willing to be your doesn’t either. Entrepreneurs need to be doing their bookkeeping; at a minimum, each month.
Have you made this mistake? Don’t worry and don’t feel overwhelmed. Let’s take it step by step to get you caught up.
Step 1: If you haven’t already, set-up your QuickBooks online account and connect your bank account and/or credit card accounts.
Step 2: Code all of the transactions that have pulled in through these accounts to the proper financial account. Is it income or an expense? If an expense, which expense account? Assign every transaction to an account. Feel stuck on one? Create an account called ‘Ask My Accountant’, put it there and come back to it later.
Step 3: Reconcile each account, month by month.
Step 4: Do a very brief overview of each month’s financial statement ONLY making sure something odd doesn’t stick out to you.
Step 5: Now keep it going!! Do this every month!!
Voila! You are officially caught up and no longer making the biggest mistake when it comes to bookkeeping!!
Still feel stuck or have questions? Let’s connect!