One of our Team Profit cofounders is in the midst of a huge home renovation – a dream made possible by this business – and it has us thinking about the importance of good bookkeeping.
There is a connection. A home cannot be renovated if it’s currently on an unsteady foundation. Similarly, your business cannot succeed if your books are even the tiniest bit shaky.
The good news: Shaky books are a lot easier to fix than a shaky foundation. It all starts with categorizing your transactions!
- Link your bank account (s) to your bookkeeping software. We’re big Quickbook fans. Take a look at our Quickbook crash course for free.
- Personalize the transaction categories based on your unique needs.
- Use the “Split” function to deal with transactions that cover both business and personal expenses.
- Regularly check and verify that all transactions are correctly categorized.
- Run P&L reports to help identify discrepancies.
Bookkeeping is Key to Your Success
We go into more detail in this YouTube video, but here’s the most important thing: Your books empower you to make informed decisions that’ll bring you closer to your goals. That’s why accuracy matters so much.
We recently asked our Facebook group to think about their goals for the rest of the year. If you know your books could use a review, make that one of your goals, and set aside time each week to do them.
Cheers to building strong foundations for our books and our business dreams (and our houses). And, as always,
Cheers to Profit!
