Episode 39 | Help! The Mess of Accounting and Bookkeeping
In this episode of the Messy Back-End of Entrepreneurship, our Expert, Rachael Jencks, Time & Money Management Coach, helps us clear up our accounting and bookkeeping messes.
“You must gain control over your money or the lack of it will forever control you.” – Dave Ramsey
Time & Money Management Coach
I have avoided and stayed away from our finances thinking somehow they would sort themselves out. Deep down I have known this is a recipe for disaster, but I just don’t know where to start. Help!
Most entrepreneurs don’t know much about accounting and bookkeeping. They go into their account every day and make sure that number isn’t negative and then they pat themselves on the back and move on.
Do more than look at your online balance, because that doesn’t tell you the whole picture. It doesn’t include any online payments you have scheduled or checks you have written. Take it a step and put information together for accounting purposes.
Rachael suggests a free software called Wave.
On Wave you can enter your income and all your expenses. That will give you a much more accurate picture of where you are sitting each day. You are able to look at your profit and loss report for more information and even categorize your expenses. It helps you see exactly where your money is going and if you need to cut expenses in a certain area.
When you know where your money goes, you know where to put your focus.
Rachael is able to upload all your information, get your account set-up and coded to provide the most effective reports and information. It is important to be specific with your coding, so at the end of the year, you can see which parts of your business are producing the most or least amount of your income. Categorize each service you offer. This can help to drive your goals for the following year and help you decide where to put all your effort. Get help with this if you need it.
You are able to get so much valuable information about your business if you have it set up correctly.
Entrepreneurs just want to do what they are passionate about, and the messy stuff in the back-end like the bookkeeping and accounting gets set aside.
It is a lot easier to start a system at the beginning of your business. You know exactly where you are and get started on the right foot.
Do what you like doing best and hire out the rest.
Rachael’s Offer: https://rachaeljencks.com/knowyournumbers