Bookkeeping 101

Are you procrastinating your bookkeeping because it just seems too hard and overwhelming we’ll watch this video because I am sharing with you why you can be awesome at bookkeeping even if you’re not good at numbers and you know nothing about accounting I am so glad that you landed on my channel because I show up every single week sharing information with you about home business tips that nobody else is talking about how to get out of debt even when you’re a spender and how to balance being an entrepreneur and raising a family so for the best homepreneur advice?

Explained 101 VAT

We are just going to clear the air and talk about the simple explanation of bookkeeping because bookkeeping has really gotten skewed where people think that it’s extremely hard and that there’s so much that goes into it that they aren’t even capable of doing bookkeeping right do you feel that way make sure to leave me a comment below and let me know if you fall into that category where you feel like bookkeeping is just too hard you are out of your league when you think about doing bookkeeping and what I want you to understand is that all bookkeeping is the act of tracking your expenses and income.

Bookkeeping 101

That’s it in its simplest form a when you are just starting out with bookkeeping you want to have this as simple as possible and that means only tracking your expenses your income and really you should be tracking your mileage too now when we talk about bookkeeping and that method does that sound hard if all you have to do is just track your expenses track your income every time you are spending money or making money you’re documenting it that’s it is as simple as that does that sound very hard of course not so where did we get the idea.

Bookkeeping was super hard and overwhelming and a lot of that comes from just being afraid of making a mistake due to taxes or when you’re talking to your accountant there’s a lot of fear that can get placed within us being worried that we’re not doing bookkeeping right but seriously guys in its simplest form just track your every time you’re spending money or making money and you will be good starting out okay now the second thing is your responsibilities when bookkeeping we tend to get worried that there’s just so many responsibilities we’re worried that we’re going to not do it all or not do it all correctly and so that can cause us to procrastinate and not make any headway whatsoever so what are your responsibilities.

When it comes to bookkeeping the first responsibility is you need to be documenting at minimum weekly now why is that why would that weekly phrase be put in there why went through a training with a person who used to he was a CPA and he used to train auditors and what he explained in this training is that if you’re ever audited the IRS will be looking at a one week time frame they will say when did you document this transaction when did you document this business activity and if you are saying well I do it on a monthly basis or.

I do it every six months or quarterly what that is well do you realize you actually are not meeting the guideline the time frame guideline which is one week this was news to me I did not know this but the great thing for you is that if you’re doing your bookkeeping at least weekly the amount of time and effort that it’s going to take you to do it to complete it is going to be so much easier than if you’re doing it on a monthly basis or even further spread out so that’s actually kind of a gift for you to have motivation to do it weekly or even daily and just because it makes it go so much faster so other responsibilities is that you need to be documenting the right inside my course with bookkeeping method so if you are ever interested.

CPA for your taxes

You can get a free webinar to read to watch through and listen more in depth about that okay so you need to be tracking the right information and you need to be having adequate doc an adequate record keeping is you need to have proof of times that you’ve spent money and an x that you’ve received money okay so there are easy ways to document that easy ways to capture the proof of that such as storing as a received.

Where I go through some of my shortcuts for record-keeping and how to make it really easy and cut the paper clutter so you do not want to miss that okay now those are the those are the responsibilities for you as a bookkeeper you also need to be meeting with an accountant or CPA for your taxes now you can have an accountant or CPA or you can use it accounting software but whatever it is you need to be consulting with a tax professional or tax professional software when it comes to tax season this is what to track that is where we are talking about your debits your credit and your balances you’re documenting every time you spend money make money and then you can be tracking your balances along.

By Anurag Rathod

Anurag Rathod, as a blogger he used to spread all about app-based business, startup solution, on-demand business tips and ideas and so on.

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