What is bookkeeping and why does my business need it?

Let’s start with what bookkeeping IS:

Bookkeeping is financial recordkeeping for your business. Bookkeepers organize and report your business income and expenses, and we also keep track of everything your business owns (like bank accounts, vehicles), which customers owe you money, and who you owe money to (like credit cards, business loans, vendors).

That is bookkeeping at its most basic. It can (but doesn’t always) include payroll, sales tax recording and filing, managing inventory, and many other operational things.

There are many misconceptions about bookkeeping, so let’s move on to what bookkeeping IS NOT:

• Bookkeeping is not offering tax advice or preparing tax returns

• Bookkeeping is not general administrative assistance

• Bookkeeping is not personal financial coaching

Some bookkeepers offer the above services as well... clear as mud?

Why does my business need bookkeeping?

1. Improved decision making

How much can you pay yourself monthly as a business owner? Are there some services or products you are offering that are not profitable? Are some of your clients consistently paying late and you want to get on top of it?

These are very important questions and you can only answer them accurately with solid bookkeeping.

2. Accurate, Stress-Free Tax Filing

Staying on top of your bookkeeping throughout the year allows tax time to be just like any other time in your business. If you (or your bookkeeper) are doing monthly expense categorization, bank account reconciliation, and report review, you will have no problem getting your tax preparer the reports they need well before April 15th.

3. Expense management

Reviewing your expenses regularly (ideally monthly) is the best way to ensure you are only paying for things you need to run your business. One of the most common offenders is recurring subscriptions, and these seemingly small charges can add up and keep money out of your pocket as a business owner.

Are you a nutritionist, coach, personal trainer, or outdoor industry small business owner reading this list and you’re already feeling a sense of relief? Let’s talk!