The Essentials of Bookkeeping

Some small business owners love going over their own books — after all, it’s their personal scorecard of how well the business is doing. Others dread dealing with numbers or get so caught up in day-to-day operations that they neglect their bookkeeping. Whether you love it or hate it, good bookkeeping is essential to small business success. 

Separate Your Personal and Business Finances

When your business is just starting out, it is easy to mix and mingle expenses and income. Co-mingling business and personal money can lead to big tax headaches down the road. Open a business bank account as soon as you have formed your business entity. It is also a good idea to get a business credit card as soon as possible. Using a business credit card responsibly helps your business build its credit rating separate from your personal credit rating.

Do A Weekly Checkup

If you are not a numbers person, your natural tendency may be to put off the "boring" part of entrepreneurship as long as you can. Then, you could end up with books that are not balanced, bounced checks or unpaid invoices that are months overdue. Make sure to review your books at least once a week. It will help ensure everything is in great shape.

Get Professional Help With Your Bookkeeping

If you are the business owner also doubling as the office administrator/bookkeeper and finding the bookkeeping too hard or don't have enough time to do it, then we recommend hiring a professional. Hiring a professional is cost-effective and more importantly, it will save you time to focus on growing your business.

Track and Document Business Expenses

With changes to business tax reporting for 2019, you should consult your accountant to see what kinds of expenses you will be able to deduct next year. Be sure to keep detailed records, including receipts. Avoid having drawers stuffed full of receipts by scanning and digitizing them; there are several smartphone apps that make this easy. Avoid using cash for business expenses. Using your business credit card is a good way to simplify your expense tracking, because most business credit cards sort your expenses by categories.

Stay on Top of Your Business’ Accounts Receivable 

Late-paying customers can quickly dry up your business’ cash flow. That’s why it is essential to pay attention to when your receivables are due and act immediately when they are overdue. Reach out to late-paying customers right away to see what’s going on with their payment and when you can expect to receive the money. If the customer is having financial difficulties, see if you can work out a payment plan to start getting some of the money that is owed to you.

Automate Whenever Possible

Bookkeeping software simplifies the tedious process of entering data into spreadsheets and reconciling figures manually. Cloud-based bookkeeping software are even better because they back up all your data — no more worries about a crashed hard drive wiping out your books. This is why we use QuickBooks Online and EpicLedger. Both are cloud-based softwares that eliminate the possibility of losing important data. Everything is in the cloud.

Stay On Top Of Tax Deadlines

In order to avoid getting caught short, plan ahead. Set aside money for any anticipated tax bills and pay them on time so you don’t face penalties. The IRS website’s tax calendar for businesses can sync with your own cloud-based calendar so you never miss a deadline.

Avoid Using Cash For Business Expenses

Instead, use your debit or credit card religiously. When you use cash, you lose track of potential write-offs. If you must pull money out of the ATM, write a note on the receipt stating the purpose of the withdrawal.

Learn To Understand Monthly Bookkeeping Reports

It’s surprising how many business owners have no clue if what they are doing is working until it’s too late i.e. they suddenly find themselves with low cash flow and huge debts. To avoid this, you must understand your bookkeeping reports such as, income statements, balance sheets, cash flow statements, etc. With OneSelfClub you get a monthly financial meeting with an advisor to review these reports and your financials in detail. This is a crucial step to have someone consult with you about your financials as they can help you understand the trend of how your business is doing, and provide another point of view on your financials. Additionally, you can use this time to go over additional questions or concerns you may have on a monthly basis instead of having to clean up everything year end to file your taxes.

Perform Quarterly Reviews

Each quarter, take an in-depth look at your bookkeeping and accounting records. Look for trends, such as growing or declining sales, year-over-year revenues, or an increase in late-paying customers. Consult your accountant so that they can help you look at the big picture so you’re better prepared for future capital needs such as buying new equipment or moving to a bigger location. Additionally, you can use financial dashboards to perform quick yet thorough reviews.

Plan For Major Expenses

Set aside money for major expenses like furniture, new equipment, repairs, etc. Proper bookkeeping is important and it can help you budget for your business. By budgeting for your small business in the coming years, you can save a lot of worry about dealing with these expenses in the future.

Have Immediate Access To Your Financial Data

If you don't have access to your financial data, it becomes exponentially difficult to make business decisions or analyze the health of your business when you need to most. Think about driving your car at night without headlights - you are bound to crash. No matter where you are in your business’ journey, immediate access to critical information like cash flow, revenue, net profit margin, expenses, etc. will allow you to make smarter choices. EpicLedger is a great tool that allows business owners to easily access their financial data no matter the time or location.

Let OneSelfClub help you with your bookkeeping needs. Sign up today or email us at This email address is being protected from spambots. You need JavaScript enabled to view it..

Not Too Sure About Your Bookkeeping?

As a small business or a start-up, you've probably resorted to hiring a bookkeeper because they're inexpensive. This is perfectly fine as start-ups and small businesses don’t have complex financials. However, even if you were sold on hiring an “affordable” bookkeeper, chances are you are not sure what you are paying for. Here’s why:

Manual Work.

Most bookkeepers bring experience but experience doesn’t mean efficiency. A bookkeeper may have 10+ years under their belt, but if they are applying manual work they are not efficient. Manual work are time-consuming and error-prone therefore, more expensive.

What Are You Missing Out?

Have you ever wondered how is your business performing? What is your current financial position? While most bookkeepers helps maintain your books, you don’t really know how to read financial statements to make critical business decision to maintain and grow your business. 

Money Out the Door!

Not knowing your numbers may be costing your more than your realize. Bookkeeping services focuses on recording raw data but have you given some thoughts about how can those data help you save costs, maximize tax savings and increase profits. Imagine if there is a technology that transforms these raw data into important, easy to understand information to assist you in optimizing your business financials.

For small businesses and start-ups, the perfect solution is to find an all-in-one accounting solution like OneSelfClub. OneSelfClub utilizes technology to automate your business so that you can increase profits, minimize costs and grow your business. Here’s what’s included:

1. Bookkeeping Services 

2. 1 Hour Interaction with a Professional Accountant

3. Month-end Reconciliation

4. Quickbooks Online Subscription 

5. EpicLedger Financial Dashboard (read your numbers in 60 seconds!)

6. EpicMileage (automatically track your business miles)

How to Prepare for the Next Tax Season

For many people, tax season can be a mad scramble full of document-hunting, form-filling, nail-biting and yelling. But it does not have to be. Starting your tax prep well before the deadline can make your life way less chaotic—especially if you own a business and plan to claim deductions.

In order to be well-prepared for the next tax season, it is essential to have good transactional data. To achieve this your books must be in order! Follow our guide to getting your business ready for tax season:

Make Sure All Transactions Are Recorded Properly

Messing up your taxes because of missing or erroneous transactions can be stressful, but it can be easily avoided. Make sure you are recording all of your business transactions in your general ledger, and that you are categorizing each transaction as accurately and consistently as you can. This will help you maximize your deductions. For example, if you recorded your website hosting under "Advertising" one month, do not record it as "Investment" the next month. Make sure you are consistent.

Know Your Numbers

Knowing your numbers will help you understand your financial position, this includes your expenses, profit, revenue, net profit margin, cash flow, etc. It will better prepare you for tax planning and strategize for some tax-saving opportunities that way you are not caught off guard and have to pay the IRS an arm and a leg.

Reconcile Your Bank & Credit Card Accounts

"Reconciling" is just a complicated word for "make sure your books match your bank accounts". Your bookkeeping is incomplete until you have checked it against all of your statements. By reconciling you can save yourself the trouble when it comes time to filing your taxes.

Hiring The Right Accounting Professional

Doing everything yourself can be a great way to save money, but we strongly advise that you have an experienced accountant to take a look at your books. Don't just hire a professional for the sake of hiring them. Make sure that the person you hire knows what they are talking about. The right accountant will make sure you are set up properly, that you are taking advantage of the right year-end tax moves, and that your business is in good shape for tax season.

Let OneSelfClub get your books tax-ready! Sign up today and skip the stress and chaos and let us handle your bookkeeping for you.

For more information, email This email address is being protected from spambots. You need JavaScript enabled to view it..