As a photographer, web designer, content creator, health & wellness coach, etc., your passion for your art and your clients fuel your business. Buuuut, for many of you, the "working with numbers" hat may be the least favorite of the many hats you wear as the CEO of your business. The numbers might be daunting, boring, and hard to understand. Am I wrong?
But, whether you like it or not, you still have to have the "working with numbers" hat on someone's head in order to run a successful business. That said, I'd like to share with you a bookkeeping guide that lists the things you can proactively manage to stay in control of your financial affairs. In this guide, we will walk you through the essential steps to maintain accurate records, track income and expenses, and stay organized. By implementing these best practices, you'll not only save time and money but also gain a clearer picture of your financial health!
Weekly:
Save all of your receipts, invoices, and contracts to a Google Drive folder
Review client billing and stay up-to-date on invoicing
Review your payables and assure you pay on time
Record all transactions into proper categories in QuickBooks or a spreadsheet
Monthly:
Reconcile all recorded transactions with your bank and credit card statements
Review your Profit & Loss and Balance Sheet statements for any discrepancies
Pay yourself!
Set aside around 20-30% of profits for estimated taxes
Quarterly:
Review (or create) a budget to manage your cash flow effectively, and consider seasonal fluctuations in income
Compare the current quarter with the previous quarter
Make the estimated tax payment (this is why I recommend setting aside money monthly)
Review your financial goals, and make bigger goals if needed!
Yearly:
Review your Profit & Loss, Balance Sheet, and Cash Flow statements in depth
Compare the current year with the previous year
Compare the year's actual numbers to your projected numbers, and create projections and goals for the next year
Send the final statements to your CPA so they can work their tax magic
I hope this DIY bookkeeping guide has provided you with the confidence you might need to take control of your business finances. By implementing these essential practices you can save time and money, reduce tax-time stress, and make informed decisions to grow your business and steward your finances well.
Remember that the "working with numbers" hat is not a hat that you have to wear! If you find that the steps above are overwhelming, boring, or too time-consuming, consider reaching out to us so that we can support your success!
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