Free Small Business Bookkeeping Templates

small business bookkeeping

A bookkeeper is someone who records the day-to-day financial transactions of a business. This system records business expenses and cash sales that are paid when incurred. Finding someone you trust to handle your small business bookkeeping services is one of the many ways that small businesses can function efficiently. Whether it’s cash basis or accrual, choose the system that’s most appropriate for your specific needs and industry. The chosen method affects record keeping, expense tracking, and most importantly–interactions with the IRS. Bookkeeping software ranges from free services with limited functionality to full-fledged accounting suites.

You communicate with your dedicated bookkeeper through one-way video chat (they can’t see you) or email. This individual and his or her team work with you on customizing your setup and monitoring your transactions so they’re accurately entered and categorized for tax purposes. They reconcile your accounts and close your books at month’s end to prevent errors, plus they’re available for questions during regular business hours. Finally, they generate the reports you need so you’re ready to prepare your taxes or hand them off to your accountant. Sunrise and Wave offer fee-based bookkeeping services, but they lack QuickBooks Live’s interactive features. Patriot software is extremely affordable when compared to some of its competitors. Many users rave about the quality of its customer support, the ease of setup, and the overall ease of use.

small business bookkeeping

And, simple bookkeeping for small business makes decisions easier. Small business bookkeeping is a crucial part of running a company. Bookkeeping allows small businesses to organize, store, and analyze financial information. By using this financial information, you can accurately draw conclusions about the financial security of your business. Small business owners have a lot to think about; from hiring the right employees, marketing, increasing sales, and more. Running a business is less stressful when you have a firm grasp on your financial situation. If handling your accounting department on your own is starting to get overwhelming, there are many benefits to connecting your accounting department with an outside bookkeeping service.

The Complete List Of Small Business Tax Deductions

Implement a system and stick to it so that you can keep accurate records every day and there won’t be any mistakes when you’re filing your tax returns. Trial balance is how you test to be sure your books are in balance before pulling together all of the key information for the financial reports and closing the books for the accounting period. This is the financial statement which presents a summary of your financial activity over a certain period of time. After working out the revenue earned, the costs of goods sold and the expenses, it works out your net profit or loss.

Shopify Capital makes it simple for Shopify merchants to secure funding. Business accounting is a set of financial activities for the processing, measurement and communication of a business entity’s finances. These activities include taxes, management, payroll, acquisition, and inventory. Perhaps the biggest advantage of a comprehensive small business accounting software is all of the time it will save.


Edit the list of account descriptions and codes to match your business accounts. The template includes space to record trial balance, adjusting entries, adjusted trial balance, income statement and balance sheet for each account. Xero is a web-based accounting system designed for small and growing businesses. It was founded in New Zealand in 2006 and is used by small business owners, accountants, and bookkeepers. No accounting knowledge is necessary, and it’s generally considered easy to set up and use. It’s known for its intuitive, easy-to-read dashboard and can be used to collaborate with multiple users including team members, employees, and your accountant. We chose it as our runner-up for the best overall accounting software for small businesses because it is easy to use for business owners with no accounting experience.

This may seem simple but it’s super important to keep up with activity for tax purposes and profit monitoring. Small business accountants range in price, depending on a number of factors. If you’re hiring in-house, the US Bureau of Labor Statistics estimates accountants make an average annual salary of $70,000. QuickBooks shows all your costs, such as inventory and maintenance costs, and every sale your business makes over a period of time. It also offers inventory automation using perpetual inventory tracking, so your sales and inventory cost are updated every time you make a sale.

Some perform payroll functions and other HR duties for small businesses. Assisting companies in processing paychecks and tax payments for their employees can be one of these services. If you’ve never handled finances for a business before, you might be wondering, what’s the difference between bookkeeping and accounting?

If your business is a side project with a limited budget, you can probably get by going the DIY route. You might still consider consulting with a CPA or bookkeeper at the beginning, just to make sure you’re doing everything right. But most businesses in the hobbyist stage can get by using either a simple spreadsheet or one of the many accounting or bookkeeping software solutions on the market. You could go with one of dozens of popular cloud accounting solutions, like QuickBooks, Xero or Wave. However, if you don’t have a lot of bookkeeping experience (or don’t have time to learn), they could stress you out more than they help you. Especially if your accountant ends up telling you you’ve been using them incorrectly for the past year. Generally speaking, accrual accounting is better for larger, more established businesses.

The Best Small Business Accounting Software For 2022

Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. bookkeeping Millions of people have used our financial advice through 22 books published by Ramsey Press, as well as two syndicated radio shows and 10 podcasts, which have over 17 million weekly listeners.

  • Doing your own small business accounting with spreadsheets instead of true accounting software is much more difficult and can lead to serious errors.
  • It’s also important to consider the features that each accounting software offers.
  • So, the makers of small business accounting sites have worked hard to present this discipline as simply and, well, pleasantly as possible.
  • Corporations, on the other hand, are separate tax entities and are taxed independently from owners.
  • Under double-entry bookkeeping, all transactions are entered into a journal, and then each item is entered into the general ledger twice, as both a debit and a credit.
  • If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.
  • Most small business accounting sites offer the option to import existing lists in formats such as CSV and XLS.

Zoho Books requires no accounting knowledge and can be easily set up. However, it only offers payroll features to companies in India, so if you need payroll solutions, you will have to choose another accounting software. Bookkeeping and accounting serve the same general purpose, but there are some distinct differences. Bookkeeping involves accurately recording all of the financial transactions of a business, including receipts, payments, purchases, and sales. Accounting is the process of interpreting financial data in order to give advice about a company’s current and future business. The accounting method your business uses will have rules about when and how to document revenue and expenses in your own records and in reports to the IRS. It will affect how you track everything from your balance sheets to your cash flow statements.

Expense Report Template

As many small business owners struggle to juggle numerous tasks, bookkeeping tasks often fall by the wayside. However, accurate bookkeeping can mean the difference between staying in business and closing down due to financial problems. Daybooks contain records of sales, receipts, payments, and purchases. The double-entry bookkeeping system posts single transactions as an income or expense item.

small business bookkeeping

If Zoho Books sounds like it might be a suitable choice for your small business, start a free trial, or read our complete Zoho Books review to learn more. You’re on your way to understanding your business better and plotting a course for future growth when you hire the right bookkeeper. When it comes to the question “Does my small business need a bookkeeper? In addition to causing burnout, overworking adds up to dollars per minute. Without updated books, you don’t know what you’re making and what steps to take to increase your income. Any personal views and opinions expressed are author’s alone, and do not necessarily reflect the viewpoint of Nav. Editorial content is not those of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities.

Outsource Your Bookkeeping When It Becomes Too Much To Handle

By hiring a bookkeeper, you let a team of professionals handle your day-to-day accounts. Recording your business’s daily cash flow can take a lot of time. A bookkeeper will probably only be needed for a few hours per week if you have a small number of employees. You will only have to pay $30 to $40 per hour for an experienced bookkeeper on a contract basis.

Without business bookkeeping, it’s hard to track and report the necessary information to the federal government. Not to mention, inaccurate reporting or failing to file can lead to penalties and fines. Our team of tax experts are skilled at handling all forms of challenges that businesses face – large or small – whether it’s bookkeeping needs or complex tax issues. We’ll not only assist you with your current requirements but also provide recommendations and guidance for continued growth. At Nolan Accounting Center, we pride ourselves on building strong relationships focused on success. The professional staff at Nolan Accounting Center provides a full range of financial services designed to meet your business needs.

  • will assist with filing your tax returns, including individual and business returns and gift and estate returns.
  • If you hire a bookkeeper, you can expect to receive monthly financial statements, so you know where your money is going.
  • In addition to these basic bookkeeping activities, your costs will be impacted by how your accounting systems, policies and procedures, and reporting needs are set up and administered.
  • Your monthly fee also includes various types of advice, including strategic planning.
  • A common mistake small business owners make is putting all their business expenses into one giant expense bucket.

Our services include our Client Service Manager visiting your place of business monthly to pick up your records. As an alternative, we can provide postage paid envelopes for you to forward your records to us on a monthly basis.

You can create a PDF version of the invoice, copy it, record a payment on it, and set it up to recur on a regular schedule. Once you complete a customer record and started creating invoices, sending statements, and recording billable expenses, you can usually access those historical activities within the record itself. Some sites, such as Zoho Books, display a map of the individual or company’s location and let you create your own fields so you can track additional information that’s important to you . Accounting service Xero has very good tools for reconciling accounts, tracking project, and managing sales and purchase transactions. Recent improvements to its setup process and new business overviews solidify it as an excellent choice for small businesses.

  • Pilot is a financial services firm that provides bookkeeping, tax, and CFO advisory services for startups and small businesses.
  • This document summarizes your business’s assets, liabilities, and equity at a single period of time.
  • Most of the time, a qualified professional can correct or document these errors.
  • You’ll save time chasing receipts, protect yourself from costly errors, and gain valuable insights into your business’s potential.
  • For businesses with employees, the payroll add-on makes it even easier.

You select one, customize it by using the filter and display options provided, and let the site pour your own company data into it. It only takes a few seconds to generate a report after you have defined it.

QuickBooks Live excels at helping QuickBooks users with the fundamentals of managing bank fees, classifying transactions, reconciling accounts, and printing financial statements. This basic cash flow statement tracks the movement of money in and out of your business and compares financial data between time periods. The template lists example cash receipts, payments, operating expenses, and additional costs. Use this template to review each item and determine the overall month-end cash position for each time period. Accounts receivable, or the money customers owe you for products or services rendered. When you have a bunch of unpaid invoices it’s easy to lose track of who owes what and by when.

Simplify Your Bookkeeping And Financial Reports With Smartsheet

Here are a few things to keep in mind when you’re searching for accounting or bookkeeping software. It’s also a cloud-based platform, meaning you can log in anytime, anywhere — giving you a degree of flexibility and mobility that you might not be able to find with every solution on this list. The platform also lends itself to easy collaboration, offering data visibility to any stakeholders at your business. OnPay can help you automate tax filings, enter payment data, and manage benefits including compensation insurance, health insurance, and 401.

Patriot offers everything you’d expect from accounting and payroll software, including expense tracking, invoicing, unlimited payroll runs, and free direct deposit. However, Patriot isn’t a great fit for every business, specifically those that need inventory tracking, job costing, or project management. However, for smaller businesses, freelancers, and contractors with less advanced accounting and payroll needs, Patriot is a top contender. Wave is well-developed software that rivals even some paid programs in terms of features. The software covers all of the accounting basics, including invoicing, expense tracking, accounts payable, bank reconciliation, and more. In Wave, users can separate personal and business expenses, which is ideal for freelancers or side hustlers who don’t have a separate business bank account. The costs a small business or nonprofit incurs for bookkeeping will depend upon many variables.

ACH Payments, Debits, And Transfers: The Ultimate ACH Guide

To do bookkeeping for a small business, start by creating a spreadsheet for accounts payables with columns for information like the supplier’s name, type of expense, and the amount you owe. Then, post your information and update your spreadsheet at least once a week so you can stay on top of your bills. You’ll also need to create an invoice template with clear terms, such as “payment is due in 30 days of invoice date,” so you can ask clients for payment. Once a customer pays, file a copy of the invoice with the cancelled check or other proof of payment. You need to make sure that your monthly recording of expenses is the same that shows up on your bank records. This means analyzing your bank statement and your accounts to make sure the same transactions appear on each.Reconciliation is a good way to catch mistakes—yours or the bank’s. Try setting aside and scheduling a ‘bookkeeping day’ once a month to stay on top of your financials.

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