Hey, mamas! I know life is hectic and your focus is on navigating this crazy world we’re living in these days. Bookkeeping is probably the last thing on your mind right now, but tune in, because there are some REALLY IMPORTANT things you can be doing now to save you the headache come tax season next year!
Don’t worry! I walk you through the exact steps you should be taking in the next few weeks to keep your books up to date without feeling overwhelmed. By breaking your bookkeeping down now, we can make sure you aren’t playing catch up later.
I’ve laid out all of the simple steps to follow so that you can get caught up on your midyear bookkeeping. All you have to do is listen and do!
Hello. In full disclosure, I am currently sitting in my car, recording this episode for you. If you hear a sound in the background, it would be the air blasting cause it is hot outside. Um, but I knew that this was the only time today that I could get to this and that I didn’t want to disappoint. Didn’t want to leave you hanging in. I wanted to get out this episode today and I wanted to do it without kids in the background. So here I am chilling in the car, um, and getting ready to talk to you about book keeping. So one of the most common things I hear is that you don’t do or start your books until it’s tax time. We are now halfway through the year. So I’m coming today with two steps to get yourself caught up so that you’re not doing all of it next April or next year.
You guys ready? This is going to be easy. I recommend that you set aside one day, depending on the transactions that take place in your business. This should you a couple of hours, or it could take you less could take you more. But I really think you can get the first six months done with these two steps and one day max, if that is overwhelming to you the next week for 30 minutes each day tackle a month. Okay. Now obviously there’s been six months. So one of those days you have to do two months or you can push it to the next week. I don’t care, but I would love for you in July to be caught up. So step number one.
Okay. Before we get to step number one, I’m going to, once again, highly recommend that you have a software in place. If you don’t that’s okay, go ahead and get your Excel spreadsheet out or whatever tool you like to use. Um, before we move to step number one, once again, if you have a software, I think this will automate your books. This will make your life so much easier and you will think me, it is a small fee to have software. I promise you will think me all right. So back to it, step number one, step. Number one is to get all of your transactions in there and then classify them, categorize them, put all your income to the certain income. Um, whether that is just one income category, or if you like to break it down, if you have different services or different products, you get to decide what makes the most sense for you.
Get those in K then your expenses, any of your expenses, get those categorized. Now, if you have a software, especially in QuickBooks, once you categorize it once or twice, I never really know when it picks up, but after a couple of times that it sees you do the same category for a similar transaction. It’s going to ask you if you want to create a rule, then it will memorize that rule. So every time let’s say you go to office Depot and buy paper, after you’ve set that rule, it’s going to remember that you got office supplies at office depot.
Right? Does office Depot even exist anymore guys? Now that I’ve said that, or is it office max? I get very confused. So if I’m wrong, just forgive me and let’s move on. All right. So categorize everything. Don’t make this overwhelming for this purpose. If you are six months behind right now, don’t worry about the nitty gritty. We will get there, get them categorized. We’re going to do an audit later on a self audit of your books. I’m going to teach you how to do that for this purpose. Just get them categorized that everything is flowing in there. We can always reclassify recategorize later. Okay. So step one, get everything in there. All right. Easy. Right? All right. Step two. Let’s reconcile your bank accounts and your credit card accounts. The only way to know that you have all of the transactions in is to reconcile your accounts.
That’s the only way to know. So take the time. And what I like to do is, um, once again, depending on your software, QuickBooks online lists, all of your accounts that you’ve connected at the top bar. So I just start at the left hand side and I start with that account first. And I go that way or the dropdown we’ll have them in a specific order. Just start at the top and work your way down. Okay. Depending on how many accounts you have, if you only have one, obviously you’re just going to do the one, but I do are, I have seen clients. I do have clients that have, you know, 10 plus I just start at the top and I work my way down or start left hand side and work over that way. You can keep track of what you’ve done. All right.
So get everything reconciled. This is easy. All you need to do is go to your credit card account, online account, or your bank account online, pull your statement. K, you have a beginning balance. You have an ending balance and a statement close date. You put in that information, that’s going to, um, uh, then you proceed to like, uh, where you would actually do the reconciliation and there is going to be a list of transactions. Uh, just like you would reconcile a checkbook. I’ve said this before. I’m not sure that people do that these days, not too many check writing, but if you are at least my age or older, you will know what it’s like to reconcile a check book. So all you’re going to do is follow the bank statements, start at the top, click the transaction by transaction and hopefully everything should net to zero difference.
Okay. So it should all reconcile out to zero because you’ve already set that ending balance in the beginning balance. So your reconciliation should show zero and QuickBooks will also give you a green marker, meaning go, okay. So reconcile do that month by month. I do not suggest that you do one reconciliation. Um, as of six 30, 20, I would go back and I would do January. Then I would do February and so on. So on. It is much easier to figure out where the problems are. If you take it month by month. All right. So get yourself reconciled to six 30. This is all I want you to do now. Okay. There are other things we can look at, but like I said, we’re going to self audit. I’m going to teach you how to self audit at some point. And if you can just do these two steps next week, you are going to be set.
Then we’re going to do it again in July and every month, I want you to set aside at least 30 minutes to do this. It should get quicker and quicker as you go. Especially if you’re using the software that will give you the rules and memorize. Some of those transactions do not be intimidated by this. Okay, guys, I know you can do this. And that is why I’m here. You can take control of your bookkeeping and start to understand your financials. We’re going to get there together. Get yourself cut up halfway through the year. I do not want you all in a panic at the end of the year. And I do not want you all to have to just hand over everything to your accountant, to just figure out because that’s money, you can do this. You can save that fee. You will give this information to your CPA, to do the taxes, but they don’t need to do your books.
You can do it. I know you can. Um, I think that, um, these two steps, like I said, don’t be overwhelmed. Just do these two things will really, uh, set your mind at ease you guys, if you get your financials together. Alright, so questions come over to the business minded mama Facebook page asked me I’m here to help or send me a private message. If you’d like, if you get stuck on a category, a category or a classification, feel free to ask. I am here to help. This is where my passion is. I want to help you. All right. So like I said, any questions, ask, and I hope you all have a wonderful and safe 4th of July. And I will see you again next week.