Blog | Financial Consulting | Number Nerd Bookkeeping Solutions

December 14, 2020

End-of-Year Document Prep Guide

End-of-year bookkeeping prep can be overwhelming, I know…especially if you have gotten a little (or a lot) off track over the past few months. But by breaking it down into bite-sized chunks, you can get it done with my prep guide.

In this blog post, I’m going over how to prepare your financial documents for the end of the year, get up to date and challenge you to set yourself up for success in the new year. Let’s dive in.

Step 1: Make Time + Schedule It

First things first. You need to make time for this. I recommend 20-minute time blocks for each month that you are behind.

On your calendar, block out recurring 20-minute time slots over a few days. Essentially, you’re breaking this project down into bite-size chunks. This approach helps build momentum by giving you an easily attainable goal every day, which encourages you to continue the next day.

And let’s not forget that you need to pick a reward. At the end of each day treat yo’ self!!!! Be your own bookkeeping best friend. My favorite reward is a trip to Starbucks for an Iced Grande Caramel Macchiato. What will yours be?

Oh, and use a timer! This helps you stay on target, and start and stop easily. When the timer goes off, stop and head out for your reward!

So, to sum up, here are my key tips for Step 1:

Be consistent.
Set a timer.
Follow the system.
Give yourself grace.
Reward yourself!

Step 2: Get Yourself Up To Date

Whether you’re already using accounting software or are just using spreadsheets, you need to make sure everything is up to date and in order. You need your totals for the year, for each category of revenue and expenses.

It’s important to gather your bank statements, receipts for purchases over $2,500, credit card statements…everything! I know that seems like a huge task, but just go month-by-month, download your statements. Then, organize the statements by bank and then by month.

If you’re using accounting software, your finances should already be entered, but if they’re not, get them in there. Get your bank feeds up to date! TIP: any easy way to do this is to use the “rules” features of your accounting software!

If you’re using spreadsheets, be sure to download your bank activity in .CSV format and update your spreadsheet. You can do it! Trust in the process. TIP: if you need help, check out my spreadsheet template link below.

If you’re really behind—that’s a-okay. Remember the wisdom of Step 1: tackle this project in bite-sized chunks, and don’t forget to reward yourself! Just go one month at a time.

If you need a hand getting all this organized—spreadsheet users this one’s for you—I’ve got a free bookkeeping spreadsheet template that can help you get it all organized. It’s even got a video walkthrough. You can get it here.

Step 3: Gather the Info

The idea behind making sure that you have everything in order is so that when you go to pass off your finances to the person doing your taxes, they have ALL the information to prepare your tax return. In addition, you will be able to answer any questions he or she may have. Plus, let’s not forget the fun organizer you get to complete. This step will help you have everything ready to go!

I always say, you don’t know what you don’t know. Same thing goes for your tax professional. Make sure you have everything they might potentially need! The idea is for you to be prepared to answer any questions and provide clarification as needed too.

Here’s what you’re aiming to collect for this step:

Bank statements
Credit card statements
Receipts for purchases over $2500
Any other financial information relevant to your business (e.g., mortgage or rent payments, utility payments, square footage of home, square footage of dedicated work space etc. if you’re using part of your home as an office; these details are needed to capture the home office deduction)

If you think they might not need a piece of information or receipt, include it anyways. They’ll tell you if they don’t need it, and better safe than sorry! If it stands out to you, the odds are you need it.

Step 4: Categorize, Categorize, Categorize

Once you’ve got all your statements together, it’s time to start sorting out what is revenue, what are expenses and where your money is going. You don’t need to have a ton of categories, but it needs to give you a clear idea of where you’re at.

Don’t overthink this part – that’s a common pitfall that catches people up. Look at where you make money, spend money and make sure it’s clear and easy to interpret.

Think of your categories from a high level, don’t overthink this part. Here are the categories I recommend to streamline the process and keep it simple for you. I pulled these categories directly from the IRS Schedule C:

Advertising
Vehicles expenses
Contract Labor
Commission and fees
Insurance
Legal and professions services
Interest
Mortgage payments (if you own your building)
Office expenses
Rent or lease (paid by the business)
Repairs and maintenance (to your office space)
Taxes and licenses
Travel and meals
Utilities
Wages

Again, you want to make sure you’re not missing anything so you get the best possible tax return. And remember, if you need some extra help. I’ve got you! Check out my free bookkeeping spreadsheet template that can help you get it all organized. It’s even got a video walkthrough. You can get it here.

Clarity Kickstart to a Financial Fresh Start Challenge

I know this is a lot, and you might be feeling a bit bogged down or in the weeds when it comes to your numbers. I get it. It’s been a long, weird year and numbers are confusing at the best of times.

So I want to lend a hand when it comes to giving you some help with my Clarity Kickstart to a Financial Fresh Start challenge. It’s running from February 8-12, so you’ve got some time to get ready.

In five days, this challenge will help you…

Get your numbers organized
Analyze your finances so well that you can basically recite your numbers in your sleep
Get clear on your expenses and pricing
Figure out how much money you’re actually making

So that’s it – that’s a wrap on this post. I hope you found it helpful and I can’t wait to see you in the challenge.

November 23, 2020

5 Features of Using The Best Accounting Software That Will Make You Money

You know as well as I do how helpful QuickBooks Online is in terms of keeping your books organized, but lots of users don’t know how to use it to its full potential to help you save time so you make more money.

In this post, I’m revealing the five best features of QuickBooks Online that will help you increase productivity, stay on top of your money and ultimately help you grow your business.

So How Does QuickBooks Online Help Me Make More Money?

Well first and foremost – by saving you time. Valuable time that you can spend on other things like generating new leads, serving clients and the other million things you have going on with your business.

Additionally, all too often people use their bank balance as a measure of how well they’re doing. Big mistake – that’s only a tiny part of the picture. QuickBooks Online allows you to get a legit comprehensive overview of it ALL…from money coming in, to money going out, to breakdowns of your expenses, with as much or as little detail as you need.

When you can see those details with the click of a button rather than having to sift through spreadsheets, go to your bank and run the numbers yourself, you are not only getting the most accurate picture of your business’ finances but you’re gaining back priceless time.

As an added bonus, you can also use QuickBooks Online to see what products or services are generating you the most revenue so you can focus on those money-makers and cut the things from your business that just aren’t giving you the big returns.

What Are The Unique Features That I Need To Know About?

QuickBooks Online has so many features and they are always adding more. But there are five big ones that I think anyone using this program should be using.

Connecting your bank and credit card accounts and creating rules

By doing this you can automatically categorize your revenue and expenses. Imagine being able to categorize hundreds or even thousands of transactions in just a couple of minutes and then not having to think about it again unless you have to change up a rule…game-changing.

Invoice automation + merchant processing

When you use this feature, QuickBooks Online automatically applies payments to your invoices and makes the deposit in the accounting system for you. No more worrying about having to manually match up payments with invoices.

Receipt tracking

This is such a great one. Sick of hunting through your bag or car at the end of the day, trying to find your receipts? Using the mobile app, you can take a picture of a receipt and categorize it in real-time while you’re on the go.

Reports

At any point in time with the click of a button you are able to run a report that reflects how you are doing. There are many reports to choose from! Let alone how easy it is to print your reports at tax time. You’ll save so much time and your tax professional will be a lot happier too!

Trackers

You can track everything with QuickBooks Online – from your revenues, expenses, debts, mileage, receipts, project profitability, to even your or your employees’ time. QuickBooks Online makes it easy for you to always have a clear idea of where your resources are going and what is making you money.

These are just a few…I could go on and on but you get the idea.

So In Closing…

There are tons of great features that QuickBooks Online offers its users and they’re adding more all the time. By using the above five you are going to save time, stay organized, make more money and have a clearer picture of how your business is doing with just a few clicks of a button.

I get emails from clients all the time saying that once they’ve spent the initial time setting up their account, running their reports is so quick and easy that they’re afraid they’ve done it wrong. Spoiler – they haven’t.

These tools are quick and easy to use and can help your business run more efficiently today.

Click here to get started using QuickBooks Online and automating your business now!

Number Nerd Bookkeeping Solutions is a Member of the QuickBooks® Business Affiliate Program.

November 9, 2020

How To Get Started With Bookkeeping Online

So you’ve started a business (awesome!) and now you need to do the…sigh…accounting. I know it can be daunting figuring out what program to use, the things you need before even getting started, and then how to set up your software. In this blog post, I’m going to tell you why I love QuickBooks Online as an accounting program for small businesses and what you need to do to get going with it. Ready to dive in?

Why QuickBooks Versus All The Others?

Often I hear from business owners that they think QuickBooks is too much for them – they don’t need all the bells and whistles, and go with a simpler software, or a free program. And then they get their feet wet with it, and realize that they actually do need a more robust program that can give them more options.

That’s where QuickBooks comes in. It’s a robust platform that you can grow into.

It flows with your business as it evolves and can be adjusted to suit your needs. It’s got three different models – Simple Start, Essentials and Plus. I always recommend people start with an Essentials trial, but more on that later.

The last thing you want to do is get a software, get it set up, use it and then outgrow it. Switching platforms is a LOT of work and if you don’t do it correctly, you can make a real mess of your books.

What Do I Need In Place Before Signing Up For QuickBooks Online?

Well…to start off, a business idea – but you knew that already! Next step is getting into that business mindset. I know doing something new like setting up a business and handling the numbers can be scary…but you got this.

Once you’ve got your brilliant idea and your boss mindset, you need somewhere to put that money you’re going to make (and spend).

A checking account – ideally a business checking account that is separate from your personal finances. A business savings account and credit card are also great to have but I know sometimes those aren’t options for new start-ups. But a “separate” checking account is a must.

I know learning QuickBooks Online is intimidating for many, but it’s all about the mindset and your confidence.

As business owners, we are constantly evolving and learning new skills – and learning to use QuickBooks Online is no different. You can do this by being open and willing to put in the time to learn this program.

I know it can be discouraging if you feel like you don’t get something right away, but remember that anything new takes time to master and get really comfortable doing.

Nothing is impossible. You got this!

So I Have My Checking Account…Now What?

Go check out the QuickBooks website and do one of their free trials. They have three options to choose from – Simple Start, Essentials and Plus. I always recommend people start with Essentials because it gives you a great overview of what QuickBooks can do for your business as it grows, without being overwhelming.

Once you download your trial, you will be prompted to choose what you need the software to do for you, pick your industry and it will personalize a program for you. And don’t worry – if your needs change down the road it is so easy to update your preferences.

Then you’ll connect your bank account to the program so you get a clear overview of money going in and out.

Next step, you’ll categorize your expenses…think separating out things like overhead, wages, administrative costs and legal fees into their own little buckets so you see where you’re spending your money.

I know it seems like a lot, but honestly, don’t overthink it, using QuickBooks Online is not nearly as tough as people think. This is a tool meant to help business owners just like you.

So to recap you’re going to…

Formulate your brilliant business idea
Get that bank account so you have a place to put the money you’re about to start making (and pay your expenses from)
Take a look at QuickBooks Online so you can see how easy it is to help you streamline your numbers and grow your business

At The End of The Day…

There are tons of accounting programs out there and you need to find the one that is going to work best for you. I am a big believer in QuickBooks Online because you can tailor it to your business as it grows and changes. Have an open mindset when it comes to accounting software and be willing to learn.

As much as I love QuickBooks Online, you also have to do your own research. Figure out what your business needs are and what your goals are for down the road, so you end up with software that serves you now and into the future.

Click here to get started using QuickBooks Online so your numbers are easy as pie.

Number Nerd Bookkeeping Solutions is a Member of the QuickBooks® Business Affiliate Program.

March 16, 2020

Moving Past Money Shame

Real talk time. I meet so many business owners with money shame, and I wish that weren’t the case. But I totally get it.

I hear from people all the time that their number woes come from the fact that they…

Don’t know or understand them entirely
See the business isn’t making money and they don’t want to admit that
Don’t want to share their numbers with a bookkeeper or accountant because that just makes it even more real

Bookkeeping is often seen as something that’s dry – after all, it’s financial. There’s not a lot of room for creativity or inspiration. Numbers are pretty black and white.

But there’s a lot of emotion tied up in finances and our relationship with money – from how we were raised to see money – to how we handle it now.

So it’s totally understandable that you might have these deep emotions when it comes to looking at your numbers and facing some hard truths – but understanding where those feelings come from is a great first step to moving past them and feeling more comfortable with your money truths.

It also might be time to get some professional help to get you on a path to learning how to handle your books. I wanted to help business owners who were feeling that crappy feeling of number shame do just that, which is why I – the ultimate Number Nerd – created the Number Nerd Review.

I don’t think bookkeepers or CPAs should sugarcoat anything. It’s not like we’re here to make people cry – but I think it’s the responsibility of whoever you hire to help with your books to pinpoint where you can be more efficient and where you need the most help.

I also think it’s important to learn how to troubleshoot and not only figure out when things are working well, but when things get a little funky and something isn’t working.

Think about it like this. Any expert you hire to give you a hand should be not only helping you get organized but setting you up to take off the training wheels so you can manage things on your own. Remember that age-old adage about teaching a man (or woman) to fish? The same goes for business.

When you hire someone to get your books back on track they should be teaching you to be self-sufficient, how to understand the ins and outs of your books and stay organized so you don’t end up in a numbers nightmare again.

When I do a Nerd Number Review, I get to help business owners learn to do that – manage their books and lose the shame. It’s awesome to see entrepreneurs move from this troubled mindset to really empowered CEOs who have the confidence and knowledge to make great business decisions.

Never gets old.

Look – I know sharing your info and numbers with an expert can be daunting – when you don’t want to face a hard truth yourself, the last thing you want to do is talk about it with a stranger.

So what advice do I have for people who are scared to share their numbers with an expert?

Experts are here to help you – and the ones that DO make you feel ashamed aren’t the ones you want to work with. Find someone who you’re comfortable with and who will help you learn along the way. Learning is meant to be a positive experience.

Just because someone is an expert, doesn’t mean they’re the right one for you. Be picky – but recognize when you need the help and find it.

Trust in yourself and know that you can do this.

Ready to move past your money shame? Book a free consultation call with me and we can talk more about how you can take back control of your business! Book yours now.

March 3, 2020

Business Success Starts with Knowing Your Numbers

Do you have fears around knowing your numbers? Why do you think you have those feelings of dread?

If you do, don’t worry. You’re not alone – those feelings are super common with business owners.

But there’s good news! You can overcome those feelings with a change in your mindset that will help you understand your numbers, make good business decisions and help you build a healthy relationship with your finances.

Some of the most common reasons that business owners fear their numbers are that they…

Don’t know or understand them entirely
They see the business isn’t making money so it’s easier to ignore them
They don’t want to share their information with a bookkeeper or accountant for fear of being judged
You’re terrified you’re doing all the wrong things

I want to tell you WHY knowing your numbers is so important.

I always say this – you don’t know what you don’t know, and that applies to your books and finances. When you don’t have a solid understanding of where you’re at financially, what money is coming in and going out, then you can’t possibly be making the best choices possible for your business.

Think about it like this. You wouldn’t sign off on providing a new product or service without crossing all the Ts and dotting all your Is and knowing all there is to know…so what makes your books any different?

I’ll give you a couple of examples of my clients who didn’t know their numbers or understand them, and therefore unable to make good decisions.

I had a client who, when I started working with her and her husband, told me they only made $50,000 in sales that year.

When we went through her numbers and really broke them down, she was shocked to discover that her husband had actually made well over $400,000 in sales that year.

That’s not to say she made that much in profit, but they were making WAY more than they initially thought because they didn’t understand the numbers.

I had another client who was making over $330,000 in sales each year but had no money in the bank. I had to show her where the money was going and why her business account was sitting empty. She was making money alright, and spending it too, just not keeping track of it.

So how do you change the fear mindset, beat the overwhelm and get your books handled?

Well, first and foremost, it’s time to admit you need to take control of your books and that you need some help. Since you’re already reading this post, you’ve figured this out, so you’re on the right track.

Next…

Start by breaking your tasks down into bite-sized chunks. By breaking your tasks down into small chunks, there’s way less of a chance of you getting overwhelmed, and you can celebrate your little wins each time you complete something.
Set time aside regularly to wear the CEO/CFO hat and look at your numbers. By carving out time in your schedule, there are no excuses for not doing the work and you hold yourself accountable.
Finally, reward yourself when you’re finished for a job well done! Whether it’s a glass of wine, an episode of your favorite show or a sweet treat, you’ve earned it.

Also…don’t be too hard on yourself. It’s okay to be afraid, make mistakes, but it’s important to admit you might need help rather than just keep on keepin’ on. You’ll get there.

Alright, I’ve talked enough. Are you ready to overcome your fear and start taking control of your books? I’m willing to bet you are, but probably still want a little help.

I got you.

I want to invite you now to download the monthly bookkeeping spreadsheet. It will help you get on track, stay organized and wrap your head around your books. It’s time to change your mindset when it comes to your numbers, bid your number fears adieu and set yourself up for success.