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Are you running your own business independently? If so, you are considered a solopreneur! As a solo entrepreneur, you handle everything yourself, from everyday business duties and office tasks to accounting and bookkeeping. Being at the helm of your own business can certainly be rewarding but it can also be challenging when it comes to multi-tasking and taking on duties outside your expertise. Today, I'm sharing a few tips to help you manage your bookkeeping as a solopreneur.
#1 – Separate Personal and Business Expenses
Co-mingling business and personal expenses may result in you being held personally liable for your business's debt and financial standing. Solopreneur or not, I recommend going through every transaction to determine if the expense was personal or professional.
#2 – Sort and Organize Your Financial Records
You'll want to start compiling and organizing invoices you sent to customers, receipts, bank, and credit card statements where you made purchases that are business expenses. It's important to review any outstanding invoices and collect on that debt.
#3 – Track Your Expenses
Keeping a record of all business expenses is essential for managing your business, budget and preparing to file for taxes. I suggest you keep a digital record of expenses to save you time and keep organized.
#4 – Invest in Software
Invest in software that will work for you. Intuit QuickBooks allows you to manage your accounting, track expenses, get invoices paid, accept payments and much more.
#5 – Reconcile Bookkeeping
Once you've organized and separated your expenses, you can log in to your accounting software and reconcile these expenses with your bank statements. This is one of the most crucial steps in preparing for tax filing, so be sure to take care when matching records.
Have questions or need help with your bookkeeping? I'd love to help! Contact me.
–Amanda Hafto, Bookkeeper email@example.com