The first step in building a PROFITABLE business that will not become another failing business statistic is to have the DATA to know where you are coming from….
Bookkeeping is the process of recording that data. The accounting software you use to record that data is ESSENTIAL to utilizing your financials to make future decisions. But often, especially for new or newish business owners confidence in your bookkeeping isn’t first on your “to do” list. (I get it! There are a million and one things to do)
So Let’s break it down…. What do you need and when do you NEED it.
If you have a business (or truthfully a hobby that makes money) you need to record AND categorize your income and expense (this is bookkeeping). My rule of thumb is…. If you have YET to make 10,000 and you don’t anticipate doing so in the next few months use WAVE – It is free, and will get you in the habits of basic bookkeeping. If you have a business making over $10,000 it is time to invest in your accounting software.
The majority of business owners can get away with QuickBooks “Simple Start”. This is the basic QuickBooks subscription – Currently, it is offered at $12.50/month for the first 3 months, and then the subscription costs $25 (Side note, DO NOT waste your dollar on QuickBooks self-employed, I would rather have you use WAVE than this subscription)
Now QuickBooks isn’t the end all be all. There are several accounting software options – I recommend QuickBooks to those new to managing finances for two reasons. One, if you have a question, more people have used it – so it is easier to get an answer (and faster to do so). Two, it is user friendly and doesn’t require you to be an accountant to navigate it.
But the KEY is…. To DO your bookkeeping…. In whatever software that works for you!
Software sums everything, provides necessary reports, lets you look at trends. SOFTWARE is the key to making real-time business decisions….
They say if you want to know where you are going, you have to know where you are coming from… Software is the key to knowing where you are coming from
BUT it is only good…. If you USE IT!
SO please, if you have a business (and even some of you hobbyists) Do the dang bookkeeping! Stop playing business and start being a business…. and if you really don’t want to do it (or won’t) outsource it!