Bookkeeping for Small Businesses Hidden Secrets – Medium Matt Olivier

Are you an owner of a business? Maybe small or large. Doesn’t matter? But you have a business to run. Your expenses are seeming to go high and high with the time wage. You don’t know where your money is going. 

For example, you fixed a budget of $10,000 for the previous month’s planner. And what? You failed to do so and your expenses reached more than $17,000. 

This article is going to save your money by 2-3 TIMES.

Good management of money equals a good amount of money. You just have to manage it. Simply you have to keep a record of money transactions.

Accounting is the most important THING when it comes to keeping your business data organized. It’s also termed bookkeeping for businesses.

Here we’ve brought amazing bookkeeping tips for small businesses that are going to make you more money.

Amazing Bookkeeping Tips For Beginners and Entrepreneurs

Most small businesses waste HOURS managing their records. That’s not even good. Do bookkeeping but not for HOURS. 

What if your record takes hours to manage?

The best part of the content is that bookkeeping is not a ROCKET SCIENCE. It can be learned easily by taking a few classes. After learning these classes you’ll discover the things that just boost businesses. But you should know the basics of working. Still, the question is:

How to do Bookkeeping for Small Businesses in this era?

It doesn’t matter how much effort you put in, it matters how you put it. That’s why you should use smart bookkeeping tips for managing your business data.

Matt Oliver described some amazing tips for beginner-level businesses and entrepreneurs. All of these tips are going to clear your queries. 

What are these tips?.

Let’s have a short introduction to the basics of business bookkeeping. 

Basics of Bookkeeping For Business

Bookkeeping is tracking, organizing and splitting the data into categories for convenience. It’s a time-consuming process but efficient. 

Why is it called bookkeeping? It’s because of the books and ledgers used in the process. 

Here’re some basics of bookkeeping. [1]

  • Making a Chart and Observing It.
  • Keeping records of financial transactions.
  • Linking the Bank with Records
  • Close a month for analysis

Making a Chart

Basics of Bookkeeping For Business
Making a Chart

Chart or a Book which is about the financial data of your business. Collect all the information and put it on it. Also, write expenses and other important stuff you need to know.

Use spreadsheets to draw such charts. 

Keeping the Record of Financial Transactions

Record of Financial Transactions
Bookkeeping for Businesses.

It’ll assist you to make sure which of the transactions are done, and which ones are pending. Using this way, you can avoid any sort of mismanagement.

Linking the Banks (Reconcile) 

smart bookkeeping tips
How to do Bookkeeping for Small Businesses

Close A Month (Analysis)

Close every month to analyze if your goals are achieved or not. 

Bookkeeping tips for beginners
Bookkeeping tips for entrepreneurs

Why is Bookkeeping Necessary?

The importance of bookkeeping for small businesses can’t be ignored. As bookkeeping helped different startups to reach their goals. [2]

See how accounting has converted into a special field comprising billions of dollars.[3]

What is Accounting?

The system that makes you informed about your business finances is called accounting. 

Input $ ←→ Output $ 

The calculation of output as compared to input is also a part of accounting. The importance of accounting in the business is like the importance of calculators in Mathematics. 

What Makes Accounting? Parts of Accounting 

Accounting comprise these processes

  • Gathering the Data
  • Entering the Data
  • Comparison & Analysis
  • Results & Conclusions

Types of Business Data

There is a set of data for any organization. All of the data collectively sets up a foundation. 

Financial

First discusses finance, which is all about money. Where is it going? How’s it coming or going? Etc. These records do contain all the accounting details of an institute. 

Legal 

None wants to be listed in some corruptive cases by the Court. That’s why all the businesses justify their stance by presenting all the necessary documents to the Court.

This data contains all the legal information of property, transactions, canceled transactions,  employees and other necessary details of a business.

Marketing

Marketing is the most important thing when it comes to high earning business. Many organizations keep the data of their customers and consumers to see what should be the next. 

Marketing Data helps a lot to any business. 

Types of Accounting

Understanding & Select Accounting

  • Accrual Based Accounting

Accrual Basis Accounting is the record of money that isn’t in HAND or GIVEN out of the hand. The money that is just deposited or received. The money that is worth but not is pending. 

The simple conclusion in line is that written statements of money are accrual basis. It just includes the record of transactions.

  • Cash Basis Accounting

This kind of accounting is one that deals with the CASH in hands. Simply, after transaction accounting is cash basis accounting. The most reliable and trustable part of accounting is cash basis accounting. 

  • Accounting Control Checklist

The sort of accounting that deals with the check on all the accounting details, their verification and further processing.

  • Monthly Accounting Tasks

Monthly Accounting Tasks are short accounting for a month. Business Graphs, costs per month, expenditure and other data are included in monthly accounting tasks.

Process of Closing and Preparation of Financial Record are the major constituents of this type. The process of Closing means gathering and finalizing all the cash data. Preparation of Financial Records is the last analysis based report of all the cash and non-cash transactions.

Accounting Secrets of Business Success 

Good Bookkeeping

Bookkeeping is the summarizing process of all the transactions. If you’re good at bookkeeping then your business is going to grow in MULTIPLES. 

How can you assure that your bookkeeping is good or not?

You can assure it by observing that if your bookkeeping shows the below characteristics:

  1. Provides all the details of transactions. 
  2. Detailed Graph of Company’s Financial Health
  3. Where The Money Is Going
  4. How Much Money Did Your Company Receive? 

See your company’s bookkeeping copy and check if it matches these characteristics. If NOT, then you’ve to reconsider the concept by Bookkeeping for Small Businesses Hidden Secrets – Matt Oliver.

Balance Sheet

The conclusive statement that shows up about company assets, accountabilities and share details. The balance sheet comprises three statements:

    • Assets list everything that the business owns.
    • Liabilities show a company’s obligations, debts, etc. 
  • The net worth of the company is the sum of the value of all the assets of a company.

Income 

Another most important thing for the accountability of your business is the INCOME of the business. The income of the business is the amount that a business makes. 

Why is INCOME important?

Income is really important to know

  • Where is your business standing?
  • How is your business going?
  • What to do in the next month? Next Year? Next Decade?

Income makes a track for your business. That track helps you to see how your business is proceeding. Is it going at the pace that you expect? Is it going on the right path?

Strategize how your business income can be improved to make it on a larger scale. Here’s what you can do about it. Intelligent Bookkeeping and more sales of your product.

Hidden Secrets of Bookkeeping for Small Businesses suggested by Matt Olivier would be the right tool for you now. 

Expenses 

Do you know there’s something exactly opposite to income? Just spending is the opposite of earning. These expenses are the opposite of income.

Expenses are the amount of money spent on your business working, employees’ salaries and other smaller things. 

Income – Expenses = Savings

This formula will help you to make a REAL understanding of expenses. Not only that, expenses tell us more about our plans. Yeah! 

We know how much we should increase to meet such expenses. That’s if we say that expenses clarify our goals, then it wouldn’t be wrong. 

Business Condition W.R.T. Expenses

Condition of a business with the help of the expenses graph can be calculated. 

  • If Income > Expenses, then the business is proceeding and has a good economical state. 
  • If Income < Expenses, then the business is going down and drowning. 

Capital

What’s about the capital? 

Capital is the number of total investments in the business. More the capital there is, the more likely the business expands. That’s why businesses share their stocks in markets. 

Capital is a mutualism forming way. The investor wants profit and you want investment. Both are beneficial. That’s how the system works.

Accounting and Bookkeeping (Difference)

Sr no Accounting  Bookkeeping
1 Accounting is tracking your business using different techniques. Bookkeeping is one of the techniques involved in accounting.
2 It doesn’t only involve the paperwork or data. It just involves paperwork and data.
3.  It’s 

  • Information
  • Analysis
  • Strategy
  • Implementation
It’s just information.
4.  Accounting should be done by an expert called ‘Accountant’. Bookkeeping can be done by itself using new software.

5 Major Principles of Accounting

Here’re the FIVE major principles of accounting you should know for a good business establishment. 

  • Revenue Recognition Principle
  • Cost Principle
  • Matching Principle
  • Full Disclosure Principle
  • Objectivity Principle

Just the names? Don’t worry, read the complete information [4].

Things You Must Know 

Here’s a set of things you must know before considering anything important for your business. You should know that these things are the most important ones.

Dedication

What makes you learn more and more? What makes you earn more and more? That’s the NEED. Sometimes you need to solve a problem, which makes you learn more and more. Or sometimes attain financial freedom, which makes you earn more and more.

Dedication is all about NEED. If you need something extremely, you’re dedicated to it. You must have the dedication to achieve something really GREAT!

Focus 

To succeed in any field focus is the most important thing. It just does not make you reach your goal, it increases your strengths. 

You’ll get how important the focus is with the help of an illustrative example. 

Have you ever seen a magnifying glass? Have you put a piece of paper in front of it during the daytime? What has happened then?

A flame appeared on the paper and it started burning. You may have observed that sunlight when discredited isn’t too strong to burn the piece of paper. When sunlight rays are brought together and tend to focus on a single point. BOOM! 

I hope you got the point. That’s what focus is.

Professionalism

After focus there’s the thing called professionalism. To get the best results you have to put effort. But not just that. There’s something else that you need to know. Smart work. That’s what is called professionalism in business. 

If you’re good and skilled, you can get what you want.

Consistency

It doesn’t matter how focused and smart you’re if you aren’t going to do it anymore. Consistency is very important because small steps can lead you to the goal, but discrete steps will not do that. 

Be consistent about your dedication, work on it and be patient about the results.

Bookkeeping Tips For Beginners 

Are you a beginner? These tips will help you know how bookkeeping works. 

If you’re a professional and spend 4-5 hours in bookkeeping for business. Then this content is helpful for you too. You might save your hours and spend those on something PRODUCTIVE. Like arranging meetings, working on another plan, deciding on other products, marketing, etc. 

How to Save Hours of Bookkeeping? Opting for these ways will make tracking your business easier without spending much time. 

Delegating 

Get rid of the task which you don’t like and pay for it. That’s simple. Contact local bookkeeping experts and ask them to manage business books for you. 

You might find the bookkeeping experts like 

Individual Person

A single person managing your and some other business books. Contact such people if you want customized services. For small businesses, individuals are good. 

Agency

A group of bookkeeping experts working in an organization. You can contact an agency if you have a lot of tasks and you have multiple businesses.

Software

Are you the one who doesn’t want to get into trouble with hiring someone or going to the company for bookkeeping work?

You don’t want to delegate completely. You just want to put a keen check over your bookkeeping record. Then Software might be a great option for you. 

Digital ways for bookkeeping are trending now. They not only keep your data, but also suggest the best tips from experts. Obviously, it’s paid, but spending some bucks to generate more, more and even more bucks isn’t a bad deal at all.

Here we brought a list of top-rated software for bookkeeping for business.

How does Software Make Your Life Easier?

Paper to Paperless Work

Software makes you get rid of paperwork. Paperwork is less reliable. All the data can be lost somewhere. The software provides you with the BEST Security System for your small business bookkeeping.

Automation

Software just makes everything automatic. You don’t have to hire an expert for bookkeeping. Software handles it by itself.

24/7 Access

Software is a trustworthy choice. You can see your data anywhere and anytime. Just log in and see your dashboard. 

Decent Pricing

Prices for accounting software are usually lesser than the delegated ones. You can get your work done at decent rates.

Best Software For Bookkeeping for a Small Business

Here’s the list 

Quickbooks Online

  • 24/7 Access
  • Easy Tracking System
  • Best Business Insights

Check out Quickbooks site [5] for more detail.

Xero

  • Amazing Tools
  • Automating your Business 
  • Access all features for 30 days for FREE

Check out Xero Bookkeeping Services [6]

Freshbooks

  • Free Try
  • Saves your time 
  • Cancel Anytime 

Check out Freshbooks site [7].

Want to check more software options? See here the Top 5 Best Accounting Software For Your Business [8]

Final Words

Bookkeeping for Small Businesses by Matt Olivier comprises the best strategies to manage any sort of startup. 

That’s not just the sales that make your business, managing your finances also make a GREAT IMPACT. 

That’s what good bookkeeping does.

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