Blog | Financial Consulting | Number Nerd Bookkeeping Solutions

April 15, 2016

Simple Income and Expense Tracking Tips

Yes, you CAN keep track of your business income and expenses and still have a life.

Small business owners work hard, and you know that – your laptop doesn’t close from the morning cup of coffee to the closing credits of Jimmie Fallon.

So, the thought of wrangling your balance sheet, tracking income and expenses, is intimidating to say the least. However, just 15 minutes every week can save you headaches, heartaches, and most importantly – time.

Let’s assume you have done your due diligence and created a business account, complete with checkbook and credit/debit cards. These are essential tools, but can also lead to a common pitfall, which is our first tip:

Keep personal expenses separate

You may have had the business VISA handy when at the grocery store, but unless you are a caterer, food is a personal expense. Don’t co-mingle expenses, because while you can always reimburse the business, it only creates work. Be disciplined and deliberate in your purchases, and you won’t have to piece back the puzzle of receipts to remember which account was used.

There’s an app for that: Google Wallet, Apple Passbook, and Lemon Wallet are just a few digital wallets that manage expenses, and can eliminate the excuse that you left the appropriate card at home.

Pay yourself…really!

Ironic that we’re so busy that we forget to send out invoices to collect the money that is due to us. Create a simple system to first track expenses for a client, and calendar the dates you will send out invoices and expect payments to be received.

There’s an app for that:

Depending on what you do, you might like tracking your business miles using Mileage log book from Amazon (old school and to the point); it’s only $7.92, and if you have Amazon Prime it’s free shipping.
Track your billable hours or keep track of your expenses while on the go. Try Harvest for time tracking and invoicing (there’s a free version) – and we’d love you to use my referral link
For receipt tracking: I like Evernote. Here’s a referral link and a 2-part corresponding blog article regarding keeping track of personal finances and receipts with a system in Evernote and getting ready for taxes with your CPA
You can also combine Expensify to track receipts and Evernote to place them into a report.

Schedule a 15-minute appointment – with yourself

This is non-negotiable. You can’t cancel on yourself. Just 15 minutes to organize the week’s activities will make you feel better because you’re taking small bites out of balancing your books rather than trying to do it over an entire month. When you keep this appointment and have caught up for the week, celebrate with chocolate. You’re welcome.

Invest in a professional, but help them out

You’re an expert interior decorator. Or web developer. What you are not is an accountant or bookkeeper. So, please hire one, but understand that they bill by the hour generally and the more of a mess you hand them, the longer it will take them to untie that Gordian knot. Give them clean, easy-to-follow records that will be quick to process.

BONUS: generally a professional will also give you tips, help you learn, and offer suggestions on software (and how to use it if you’re particularly challenged) to further assist you with mastering your income and expense tracking

Suggested software and apps include QuickBooks, which has an online program as well to make sharing documents with the accounting professional you’ve so smartly hired that much easier. In addition, there are free downloadable bookkeeping programs available. Shop around to determine which will be most compatible with your accountant, and which offer a level of use that fits your skill level. I’m more than happy to help you pick the “right” program too! Schedule a time and let’s get started!

It’s all about spending a little time on the things that you might not have a degree in, but need to know in order to keep your business running smoothly. After that, the rest of the week is yours to dominate your field. And who knows? You may even now have enough time to relax and enjoy your success, too.

February 9, 2016

When to Hire a Bookkeeper: A Guide to Small Biz Bookkeeping

Bookkeeping can often be a challenge for many entrepreneurs. It’s often one of those tasks you think is easy to take care of on your own, but you know as well as I your time is precious and can be better spent elsewhere. It’s virtually impossible to attend to every aspect of your business and sometimes even more difficult to let things go.

If you’re already DIY’ing your bookkeeping, you’re probably using a software such as QuickBooks or Xero already, or you may even be just utilizing a simple system of Excel spreadsheets. But did you know there are tons of other software’s available to you at lower costs that could be saving you money? Or you may even need something a bit more robust that your current system just isn’t doing. While saving money is a big factor, at times hiring a bookkeeper can actually save you more money in the long run.

This is where outsourcing a bookkeeper comes in handy. If you happen to be a freelancer or small to mid-size business and don’t have the time to attend to your bookkeeping, or you’re struggling to put a system in place then you’re in the right place. There’ll be a time when you come to realize, bookkeeping just isn’t where you want to spend your extra time. There are a number of affordable options when outsourcing a bookkeeper and you can read more about the different types of services available to you here.

If you’re still on the fence, here are some tips on deciding when to hiring a bookkeeper is the next step to growing and managing your business. But before we get to the nitty-gritty let’s clear up a few myths:

Bookkeepers – what do they do?

It’s a common mis-perception to mix a bookkeeper with so many other jobs like a personal assistant or an accountant. A bookkeeper is hired to record the financial transactions (that includes organizing, collating, recording and maintaining etc.) of any business to keep your taxes in check, your employees and bills paid, and invoicing up to date. An efficient bookkeeper will keep track of sales, receipts, purchases and payments as well.

Are they different from Accountants?

Yes, and they are often confused with each other. They have similar tasks, but the scope and scale differentiate them. Bookkeepers keep the accounts in accurate form with day-to-day recordings. They assist you with timely advice on late invoice payments, cash flow problems etc. We also prepare the paperwork your accountant will need when tax season comes around. An accountant will review your account periodically (usually per quarter) and file financial reports and tax returns. It’s important to be conceptually clear that a bookkeeper and an accountant are not interchangeable.

When to hire a bookkeeper?

If you are a freelancer or a startup then you need to focus on some very pressing issues like marketing, client handling, recruiting and production, etc. With so much happening around you, it would be hard for you to focus on your financial transactions and visibility. Ideally, a bookkeeper is an indispensable member of your team right from the get-go. As soon as money starts to flow in and out – your recordkeeping journey begins! Such as paying bills or receiving customer payments, calculating estimated tax payments or payroll. You’ll soon find it difficult to keep up with crunching the numbers and your workload.

There’s a ton of information to record. And believe me, it’s a serious hassle if you have little idea or knowledge of the tedious bits and pieces you need to keep track of. Without a professional bookkeeper, it’s nearly impossible for you to keep a proper record of every transaction going in and out of your business. Also, it’s a good idea to have another person review your bottom-line and ensure you are making the most profit you can. This can result in serious financial mistakes and monetary losses that you definitely want to avoid. Ideally, you’ll want to focus on what you love doing rather than what you don’t, the numbers.

Feel free to check out how we work here and the different options available to you here. I’m sure you’ll find a bookkeeping solution to fit your needs and if not we can come up with a customized solution too. Let me be the “nerd” and crunch the numbers so that you can continue doing what you love!

December 30, 2015

Hello 2016!

Hello 2016 | Number Nerd Bookkeeping Solutions Amidst a flurry of posts about year-end reflections, holiday hacks and new year’s resolutions, I thought I’d christen the Number Nerds blog with something a little different.

Because you’re already thinking about all the things you’d like to focus on in 2016, the good habits you’ll develop and foods you’ll avoid. You certainly don’t need me adding to your overwhelm with a Year End Bookkeeping Checklist or How to Better Manage Your Finances in 2016 blog post. Obviously others have got this covered.

Instead, I want to suggest an alternative resolution.

A resolution to relax. To enjoy the time you have with your loved ones this holiday season. To approach the new year with a sense of peace that you are, in fact, enough.

Where is this coming from? Truthfully, I learned a lesson this year. Courtesy of Ash Ambirge, a woman who knows she is enough and isn’t afraid to tell those pushing self improvement products where to shove it.

The lesson was this: I don’t have to be good at everything. And if I tried to be, I would be doing my already awesome self a disservice.

Because becoming a Jill-of-all trades is code for “I’m not great at anything so I’m going to settle for being mediocre at everything.” And frankly, I’m reeeeeally great with numbers. Like, really.

So here is my holiday challenge for you. My new year’s recommendation, if you will.

Don’t tell yourself you’ll use those “vacation” days this holiday season to balance your books, sort your receipts, or prep your taxes.

Commit that precious time to something you enjoy. Then, when the new year comes, give me a call. Because numbers don’t stress me out. Managing finances is my middle name.

Actually it’s Ann, but that’s the sort of thing you can find on my About Me page.

Now, if you’re a planner — the type who uses coupons before they expire and cooks all your meals on Sunday — drop me a line or read about my services. We’ll arrange a consultation so you can rest easy this holiday season.