Set up bookkeeping by opening separate business accounts, choosing accounting software, building a simple chart of accounts, recording transactions regularly, reconciling monthly and saving records in an organized system.
1Step 1: Separate your money
Open a business bank account and, if you can, a business credit card. Use them only for the business. This one step prevents most early bookkeeping problems.
2Step 2: Choose your software
For most small businesses, cloud accounting software such as QuickBooks Online is the practical choice. It imports bank transactions, stores documents and produces reports.
Pick one system and stay with it. Switching later is possible but costs time.
3Step 3: Set up your chart of accounts
Create a short, clear list of income and expense categories that match how you run the business. Avoid dozens of near-duplicate accounts.
4Step 4: Connect your accounts
Link your bank and credit card accounts so transactions flow in automatically. Then categorize each one and check that nothing is duplicated.
5Step 5: Record income and invoices
Send invoices from your software, record payments when received and track what customers still owe.
6Step 6: Save receipts and documents
Keep receipts and invoices in a consistent place, digital if possible. Name files clearly and file them as they arrive.
7Step 7: Reconcile every month
Match your books to each bank and card statement. Do this monthly, not yearly.
8Step 8: Review your reports
Read your profit and loss and balance sheet each month. If something looks wrong, investigate it now.
9Step 9: Decide who does the work
If bookkeeping is taking too much time, hand it over. We offer monthly plans and a free 15-minute call to find the right fit.
Want help with your books?
Book a free 15-minute consultation. Tell us where you are stuck and we will recommend the right next step.