Igniting Business Growth with More Profit and More Time

5 Things To Do As A New Business Owner To Successfully Manage Your Bookkeeping

You worked so hard to launch your small business and your hard work is paying off! You’re booking services, making sales, and your business is growing. While we know you have your hands full making sure your business is running smoothly, it’s extremely important to stay on top of managing your bookkeeping as well. Keeping track of expenses, understanding profit, and keeping records organized can make or break the success of your business. We put together a list of the first 5 things you should do after starting your business to successfully handle the bookkeeping for your business. This is crucial because it:

  • Keeps your records organized and easy to understand
  • Maintains compliance with the IRS and tax requirements
  • Assists in budgeting efforts
  • Informs decision making
  • Allows you to track profit
  • and more

Here are 5 of the most important tasks to complete to set yourself up for bookkeeping success.

  1. Register your business with the state and make sure you have a business account set up with an EIN number
    Registering your business with the state is one of the very first things you should do when establishing your business. If you’re conducting business under your legal name you can skip this step. However, if your business is an LLC, corporation, partnership, or nonprofit, you will need to register with any state where you conduct business. You’ll also need to register for an EIN number (Employer Identification Number) with the IRS. This will be a unique nine digit number and is necessary if you’re starting a business. You can easily apply online here. Once you have this completed, you can use your EIN number to open a business account with the bank of your choice!

  2. Ensure you’re keeping your business expenses and personal expenses SEPARATE

    Now that you successfully registered your business and have a business bank account, it’s important that you actually use that account for your business expenses. We often see business owners using one bank account for their personal and business expenses and deposits. It may feel innocent at first, but this can quickly become messy and creates confusion when it comes time to reconcile, pay taxes, and run accurate reports. So step number 2 is to keep your business account completely separate from your personal account.

  3. Connect to Quickbooks Online

    Intuit Quickbooks Online is an easy to use online accounting/bookkeeping software that makes managing your expenses, invoices, payroll, tax information, etc. a breeze. The software is intuitive to use and assists you in keeping all of your financial records organized and in one place. Prices range from just $15/month – $100/month depending on your needs. If you’re ready to connect to a Quickbooks Online account, use the form here to receive a discounted rate!

  4. Reconcile on a monthly basis at minimum

    After you have your Quickbooks Online account set up properly, it’s important to reconcile your expenses and income on a monthly basis at minimum. We recommend setting an alert or reminder on your calendar once per month to stay on top of this. Doing so on a monthly basis will allow you to catch any mistakes quickly, sort out any discrepancies, and get you back on track. 

  5. Understand why you’re keeping track of these numbers and how it relates to the success of your business
    Taking time to dive deeper into the reports offered on Quickbooks Online is extremely important. Understanding your business’s profit or loss, expenses, cash flow, accounts receivable, etc. will allow you to make educated business decisions and could be the difference between the success or failure of your business.

These crucial steps will set you and your business up for success, financial clarity, and save you from a messy and anxiety filled tax season every year. 

We understand that you didn’t start your business to be a bookkeeper. If you’re feeling overwhelmed, we’re here to help! We know that keeping up with the ongoing demands of your bookkeeping while trying to successfully serve your customers and run your business can feel impossible. The team at Rise Up Bookkeeping specializes in helping small to mid- sized business owners take control of their accounts, and we would love to help you do the same. 

Here are a few ways we can help:

  • QuickBooks Online Review
    Let an expert provide you with a detailed report covering exactly what needs to be addressed
  • QuickBooks Online Cleanup Services
    We’ll help you correct mistakes and play catch up so you can finally have up-to-date books
  • QuickBooks Online Monthly Bookkeeping
    Cross one giant task of your to-do list and let the experts handle your monthly bookkeeping
  • QuickBooks Online Training
    Learn how to navigate QuickBooks and leave with a personal plan of action moving forward

If you have specific questions feel free to email us at info@riseupbookkeeping.com.