Dreaming of a Financial Unicorn?
If you run a small business, you probably wish you could hire some financial unicorn to manage your books and guide you with strategies to increase cash flow. And lucky for you, those exist (hi, it’s me, Karen! Founder of Sacred Money Inc.) but it’s not written in the stars for you to hire a bookkeeper or financial consultant right now.
What Does DIY Bookkeeping Involve?
So, let’s talk about DIY bookkeeping as an option for you and your small but mighty business.
Also known as Do-It-Yourself bookkeeping, this is the process where small business owners manage their own financial records without the assistance of a professional bookkeeper or accountant.
This is when you track income, expenses, and other financial transactions, maintain accurate records, and ensure compliance with tax laws and financial reporting requirements. I know, it sounds like a lot, but I do this for a living and I can teach you to make it look easy.
Maybe you’ll even find a new calling as a bookkeeper or accountant… okay maybe not but after this you’ll definitely feel more confident in your DIY bookkeeping skills!
Before we start, I want you to know that even if you choose to do your bookkeeping yourself to decrease overhead costs in your business, you don’t need to do it alone. Sacred Money Inc. has a membership you can join for ongoing support with your DIY bookkeeping journey AND I offer 1:1 consultations that you could use to double check your work. (Learn more about Flourish Membership and schedule a free consultation here)
I’ll let you decide on your own if it’s worth it to DIY your bookkeeping or simply hire help.
Steps to Start DIY Bookkeeping
To get started, here’s what you would need to do:
Choose the Right Bookkeeping System: Decide between single-entry or double-entry bookkeeping based on the complexity of your business. Then, select the software that suits your needs, such as QuickBooks, Xero, or even a spreadsheet for simpler records.
Set Up Your Financial Accounts: Categorize your income, expenses, assets, liabilities, and equity. This foundation is key to staying organized and tracking your finances accurately.
Record All of Your Transactions and Do It Consistently!: Track income and expenses so nothing gets overlooked or misclassified.
Reconcile Your Accounts Regularly: Regularly compare your financial records with bank statements to catch any errors or discrepancies. Reconciliation ensures your bookkeeping is accurate and up to date.
Track and Prepare for Taxes: Track tax-deductible expenses, sales tax (if applicable), and any required filings. Set aside funds for tax payments, and keep records organized in case of audits or tax preparation.
Is DIY Bookkeeping Right for You?
While DIY bookkeeping can save money on professional services, it requires a solid understanding of accounting principles, attention to detail, and regular time commitment to ensure accuracy.
Many people use bookkeeping software to streamline the process, making it easier to manage finances, generate reports, and stay organized. However, it can be challenging for those without financial expertise, and mistakes can lead to costly errors or missed opportunities for financial optimization.
Hey there! I’m Karen.
I'm the Founder & CEO of Sacred Money Inc., where I empower spiritually-minded entrepreneurs to heal their financial wounds and manage their money with confidence and grace. We offer a unique blend of practical financial expertise, including bookkeeping and tax services, with trauma-informed coaching. My work is here to guide you toward financial resilience and abundance. I'm passionate about transforming the way we think about money and integrating it with our values, pleasures, and spiritual practices.
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