Bookkeeping
Here is practical, realistic advice to make bookkeeping easier even if you have zero accounting background. These are the same tips I give to new small business owners and junior bookkeepers.
| Tip # | Focus Area | Practical Advice | Notes |
|---|---|---|---|
| 1 | Single Business Bank Account | • Deposit all income into one account • Pay all expenses from one business card |
Avoids mixing personal & business transactions; simplifies books |
| 2 | Cloud Accounting Software | Use QuickBooks Online, Xero, Wave • Auto bank feeds • Categorization rules • Invoice templates & reminders • Receipt capture • Auto reconciliation suggestions |
Automation reduces need for accounting knowledge |
| 3 | Simple Chart of Accounts | Use 15–20 key categories: Sales, COGS, Advertising, Software, Office Supplies, Utilities, Travel, Meals, Payroll, Owner Contributions/Draws |
Fewer categories = easier bookkeeping |
| 4 | Bank Rules | • Auto-categorize transactions by keywords • Example: “Google” → Software Subscription |
After 2–3 months, 60–80% of transactions auto-categorized |
| 5 | Receipt Management | • Take photos with app • Email invoices to software • Optional: Use Dext/Hubdoc |
Digital storage is audit-acceptable |
| 6 | Weekly Reconciliation | • 10-minute weekly sessions • Approve bank feed transactions • Attach receipts • Match deposits |
Prevents backlog & stress |
| 7 | Separate Personal vs Business | • Personal cost paid from business → Owner Draw • Business cost paid personally → Owner Contribution |
Keeps Profit & Loss accurate |
| 8 | Track in Spreadsheets Only if Needed | • Mileage logs, inventory, job costing • Avoid full bookkeeping in Excel |
Manual tracking is error-prone |
| 9 | Learn Essentials Only | • Income, expenses, assets, liabilities • Transaction matching • Reconciliation basics |
No need to master full accounting |
| 10 | Monthly Checklist | • Approve bank feed items • Attach receipts • Send invoices • Review P&L & Balance Sheet • Ensure bank balance matches • Backup/export reports |
~20 minutes/month if done consistently |