When it comes to being self-employed or a business owner, there are so many factors that you would need to consider for your business bookkeeping.
In this blog post, I will point out a few helpful business bookkeeping tips and tools that you can utilize that will help you keep track of your finances, budgeting for your business, and so much more.
(This post may contain affiliate links. I only share opportunities I feel will benefit my readers.)
Tip #1 Money Management
When it comes to business bookkeeping, one of the best things to do is to implement a money management plan that will help with budgeting for your business. There are so many tools that you can use for your business that will help you keep track of your income and expenses.
Another tip that is great to utilize in your business with money management is to save money. There are so many strategies that you can use to help save money. Doing a cost analysis for your business will help you to eliminate unnecessary expenses and may enable you to save or invest back into your business.
Here are a few tools that are helpful to use for your business:
Quickbooks– This is a tool that is great for allowing you to organize your business bookkeeping and more. It has tons of features and can work well no matter if you are self-employed or a small, medium, or a large-sized business.
Quickbooks is great no matter what niche you are in even if you do self-employment gigs such as blogging, freelancing, or even if you are a Door Dasher, etc.
Considering all of the features and the benefits that you can take advantage of for your business, no matter what way you use Quickbooks, it is very affordable and beneficial to use.
To learn more and if you are interested in a free trial of Quickbooks, you can click here.
Acorns– This app is not directly used for business bookkeeping, but is a great app that you can use that will allow you to save money for your business and invest money into stocks automatically with your spare change. This app can be used for your business or personal use. All you would have to do is connect your bank account to the app, and it will take your purchases and round your spare change to the nearest dollar.
For example, if you spend $4.50 on a purchase, you can have it set to invest the spare change to the nearest dollar back into the app towards stock investments. So from the $4.50 purchase, $.50 would go into the investment account. You can have it set that way or you can customize your investments any way you want, more or less. You can also do a one-time investment payment as well.
There are also other benefits you can take advantage of such as purchases. If you make purchases and shop directly within the app at places such as Walmart or Office Deport etc. for supplies etc., you can receive investment credits into your account as incentives.
This is a great and easy automated way to save money and invest. You also have the option of pulling the funds out at any time if you choose.
If you are interested in learning more or signing up, you can click here and receive a $5 instant credit by clicking here.
Tip #2 Self Employment Tax Benefits/Deductions
Another great business bookkeeping tip to use is to keep track of your receipts to write off your business expenses. You can potentially write off expenses such as gas, computer equipment, office equipment, office and cell phone, mileage on your car, and so much more.
If you work from home, you can even write off a portion of your home as a business deduction. These are all potential possibilities and I am not considered to be a tax advisor so of course, I recommend you contact your tax consultant to see what you are eligible for as far as deductions since every business is different.
Keeping track of all of your expenses as well as income etc. is a great practice to have that will save you a headache when it comes to tax time. That is why I mentioned previously in this post the benefits of Quickbooks and how it can take care of the calculations during the year for you so that you are ready to go for tax time.
For more information on the benefits of using Quickbooks for your business, you can click here.
Tip #3 Take Advantage of Yearly Savings
If you are like most business owners, there are services, software, and tools that you can use for your business that you may be paying for on a monthly basis.
One way of taking advantage of finding savings for monthly subscription expenses is to see if there are options for yearly subscriptions. In most cases, if you take advantage of a yearly subscription vs. monthly, you can save sometimes between 20-30% or more of what it would cost monthly.
For example, there are services such as Tailwind that I personally use for my business which is an automated social media poster tool. It costs $14.99 a month which is $179.88/year for the standard subscription.
If you do the yearly subscription it would cost me $119.95 which I save $59.93/year which is a 33% savings! I could take the $59.93 that I save just from this one service I am using and invest that back into my business for other expenses etc or invest into my Acorns account!
As you can see, there is a huge benefit when it comes to taking advantage of yearly vs. monthly subscriptions.
Tip #4 Keep Track of All Receipts
This is an important tip to take advantage of for so many reasons. As mentioned, it is great for tax purposes so you know what expenses to deduct, etc. As mentioned before, Quickbooks allows you to keep track of these expenses for as little as $5/month with the self-employed subscription.
Another great way of keeping track of your receipts is with Google drive. You can take a photo of your receipt and upload the receipt into your Google drive. You can even create categories or folders for organization purposes.
Tip #5 Know Your #’s For Your Business
It is so common for business owners to get into the daily habit of running their business and not even know where they stand financially. It is good to know how much is coming in as well as going out of the business.
Some key pointers are to know your cost of goods, your monthly and yearly projections, your profit margins, and your incoming revenue and expenses.
Quickbooks again is great for calculating this information for your business and so much more.
If you are looking for assistance with help with bookkeeping for your business, you can fill out the form below for a complimentary consultation.
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