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33. Bookkeeping Best Practices for Non-Accountant Entrepreneurs

Air Date:

Feb 1, 2023

Duration:

50 Min

Can your business afford to take a loan? When and how do you come to this decision?

This is a question a good accountant should be helping you navigate and answer

Listen in as Lola and I give you the questions you should be taking back to your accountant to make sure that you have the right information to make this key business decision.

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Episode Show Notes :

Introduction: 


Welcome to the Stuff Your Accountant Isn't Telling You podcast, where we tell small business owners the secrets and strategies that big businesses use to increase their profits.. In today's episode, we will discuss bookkeeping best practices – a topic that is crucial for the success of any business but can be intimidating for those who don't have a background in accounting. This episode is for you whether you're just starting or have been in business for a while.


We'll cover the key things you need to know to ensure your bookkeeping is accurate if you’re doing it yourself OR if you have someone doing it for you. By the end of this episode, you'll have a better understanding of the best practices, but more importantly, you’ll feel more confident that your numbers are accurate. Let’s go!


Main Points: 


As a non-accountant business owner, it's essential to have a good understanding of your company's financial health. This includes keeping accurate and up-to-date bookkeeping records. But before we dive into that, let’s simplify some definitions: 


What is Bookkeeping?

Bookkeeping is correctly recording, categorizing, and reporting the money that comes in and out of your business and any related transactions. 

Where some business owners get lost is they don’t know the technical part of how transactions should be classified. 


Cash vs. the Accrual Method:

  • Cash - report whatever comes in 

  • Accrual - report whatever is EARNED 



Bookkeeping Best Practices/Tips:

  1. Keep BUSINESS and PERSONAL separate as much as you can 

  2. Separate bank accounts make it easier to have a true view of your expenses and income

  3. Make sure you choose a bookkeeping system that works for what you need

  4. Payroll support etc. 

  5. Quickbooks vs. XERO 

  6. Make sure all the banks you use are connected to your accounting system 

  7. Review your accounting records at least once a month or quarter, depending on the size of your business.

 


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