Bookkeeping Archives | Number Nerd Bookkeeping Solutions

February 22, 2021

5 Reasons Why You Should Be Your Own Bookkeeper

I know bookkeeping isn’t everyone’s jam, but it sure is mine, and what I’ve learned from my clients over the years is how important it is for small business owners to know how to do their own bookkeeping. It not only keeps your costs down but also helps you really understand your business finances so you can make the right decisions.

In this post, I am going over five reasons why you should be your own bookkeeper and the consequences of ignoring those reasons.

Ready to learn more? Then keep on reading.

Be Your Own Bookkeeper Reason 1: Cost

It costs a lot to have someone else do your numbers for you…and as small business owners, I don’t need to tell you that every dollar counts.

It seems tempting to hire someone because you might not feel confident in doing the books yourself, but trust me, those dollars spent on bookkeeping add up.

I know some bookkeepers charge really low rates so you think it’s a justifiable expense, but remember, just because it’s cheap, it doesn’t mean it’s the best. You get what you pay for…and even sometimes when you pay the premium price you still don’t get the quality you need.

Also…when we hire bookkeepers, we need to find people who can really explain and break down the reports on our finances so we understand them completely. A lot of times that doesn’t end up being something that is included in bookkeeping services, leaving business owners in the dark on their numbers.

In my opinion, it’s worth it to spend the money to educate yourself on your books instead of passing it off to someone else when you’re only hitting a certain income threshold.

Be Your Own Bookkeeper Reason 2: Understanding

Plain and simple – you have to understand what you’re looking at when you go over your numbers, not just trusting that someone else is handling everything for you.

Having a solid understanding of the money coming in and the money going out allows you to make the best decisions possible for your business today, avoid bad ones (I cannot stress that enough) and also plan for the future.

More understanding = greater success.

That is why I offer things like the Number Nerd Bookkeeping Academy. It helps business owners get that solid understanding of their numbers, so when they look at the books they know EXACTLY what is going on.

Be Your Own Bookkeeper Reason 3: Awareness

This one is closely tied to Reason 2…because understanding creates awareness.

Do you ever wonder if maybe there is a chance that you’re missing out on money you could be making or spending too much on something? Well, being aware of your numbers and what they mean can help prevent situations like that.

Giving your numbers a quick once-over every month doesn’t give you enough awareness to…

See if there are ways things can be adjusted so you’re making more and spending less
Identify problems and fix them quickly
Find new opportunities to create more income

And ultimately, that’s what we want you to do….make money!

Be Your Own Bookkeeper Reason 4: Planning

The more you know about bookkeeping, the better positioned you are to make good decisions. When you know your numbers inside and out you can determine if your marketing is working, whether you’re charging enough money or spending too much time on business activities not contributing to your bottom line.

Say if you want to invest in a product or service, or you want to focus more on one aspect of your business, planning is the only way to make those things happen successfully.

When you do your own books, you’re getting down and dirty with your numbers. You know your analytics and that makes it SO much easier to plan and strategize for how you want to move forward, invest in your business and spend your time.

You didn’t start your business willy nilly, without a plan. You know how important it is to have solid plans in place rather than making knee-jerk decisions without all the information. Knowing your books will ensure you make solid, informed decisions that set you up for success.

Be Your Own Bookkeeper Reason 5: Ditching The Fear

When you fear your books, you’re not going to dive in and really commit to getting to know them the way you need to in order to make the best decisions possible.

Plus, nobody likes being afraid! It’s not a fun feeling and it holds you back from up-leveling your business!

Let’s end the guessing game on your numbers too! No more guessing on whether or not you are doing things the right way.

The more you know, the less fear you will have and you’ll become empowered to make solid, confident choices or ask for help when you need it! Fear has no place in your business and by kicking it to the curb, you will become a better, more successful CEO.

Ready to Become Your Own Bookkeeper?

Most businesses that fail do so because they don’t have a handle on their numbers. I have made it my mission to try and prevent that from happening. Everyone needs education around their numbers so they’re able to notice problems and clean up any trouble spots or dig into things that don’t look right.

And there’s no shame in needing a little help! None of us are born with all the bookkeeping knowledge pre-programmed into our brains. We all learn it at some point.

I created the Number Nerd Bookkeeping Academy for business owners just like you, who need that guidance and to empower you to know how to do your own bookkeeping. It’s an online academy that gives you the education, know-how, on a weekly, monthly, quarterly and annual basis to get and keep your bookkeeping in tip-top shape.

Your business is your livelihood. You owe it to yourself to understand it completely so you can take charge of it and grow. Learn more about the academy now.

February 8, 2021

Behind-the-Scenes of the Number Nerd Bookkeeping Academy

The Number Nerd Bookkeeping Academy is Opening…

As a self-proclaimed number nerd, I have a passion for business and helping business owners master their books, which is why I started the Number Nerd Bookkeeping Academy. I believe that business owners who have a solid understanding and awareness of their numbers and what they mean have a WAY better chance of succeeding.

In this blog post, I am giving you a behind-the-scenes look at everything I’m including in the academy in order to set you the CEO up for success.

I’m talking….

Why entrepreneurs should join the bookkeeping academy
What’s in the bookkeeping academy
What you’ll do in the first few weeks in the academy
What you’ll do monthly
How it will help you grow your business and master your books

Want to learn more? Then keep reading, biz whiz.

Why Join the Number Nerd Bookkeeping Academy?

Well for starters, if you want to have the confidence to make informed financial decisions that help you grow your business and ditch your number fear, then you should join.

I set up the academy to help business owners like you do just that, and more. It will help you set up and manage your bookkeeping system so you know where your money is coming from, going to, how to identify problems and seize new opportunities.

What Will You Do in the Number Nerd Bookkeeping Academy?

In your first few weeks, you’ll start by going through the videos I’ve put together for the academy. You can do it at your own pace but it will give you a solid base of knowledge for when you start diving into the rest of the content.

After you get through the videos, then it’s on to the real work (don’t worry, it’s not as scary as it sounds). Again, this program is totally self-paced but there are live working groups every month that you can join to ask questions if you get stuck, and have a solid routine to keep your bookkeeping up-to-date.

These working groups will bring academy members together to get through their bookkeeping so that you have a set time to do your bookkeeping each month. Plus, you get support from me ‘cause I’m in the group too!

There’ll also be breakout sessions during the live sessions with me, so you can ask me anything that you might not feel like sharing with the group.

Monthly working groups like this are so helpful because they keep you up-to-date on your books, build good habits and let you learn from other business owners. Triple win!

Sounds Good…But What’s Included?

This one-year membership includes everything you need to set up an easy-to-use, sustainable bookkeeping system for your business.

When you sign up for the academy, you’ll start off doing a quiz so we can see just where you’re at in terms of knowledge and what your bookkeeping needs are.

After that, you’re getting access to a series of QuickBooks®️ Online tutorial(s) so you can get set up right from the beginning.

Then, you’ll go over bookkeeping fundamentals that set the foundation for your bookkeeping success.

Attend the live working sessions to get your bookkeeping maintenance on point and get any questions answered. These sessions will also include how to read and understand your financial reports. The additional support inside the academy includes the ability to answer questions at any time, easy-to-follow video tutorial(s), weekly, monthly, quarterly and annual checklists, quarterly workshops….and tons more.

There’s also things like Q+A sessions with me and the quarterly workshops will cover things from budgets to pricing for profit. Whew!

How Will It Grow Your Business?

When you sign up for the academy, you’re going to quit waiting until the end of the year to do your bookkeeping! No more mad dash at the end of the year to get it all done, which often leads to things getting missed. You’ll be all caught up on your bookkeeping each month—and you have the systems and workflows in place to stay caught up.

You’re going to learn to understand where your money is coming from and where it’s going so you can make the right decisions for your business and confidently plan for the future. Knowing your books will empower you as a CEO to up-level your business – plain and simple. The transformation you go through will be eye-opening and amazing!

So in closing….

You might have no clue about what your numbers are or what they mean right now. Maybe numbers and money evoke feelings like angst, overwhelm, fear, frustration, and shame.

I get it, but there is help out there. When you have a solid system for doing your bookkeeping correctly, you also gain powerful data to help make strategic business decisions in your business, such as:

How much you need to work to reach your financial goals
Understanding your budget and being able to plan for your business investments
Pricing your offers to support your personal and business goals
And so much more!

Knowledge is power, and knowing your numbers is an important part of running a successful and fulfilling business.

The Number Nerd Bookkeeping Academy will have you mastering your books and help guide you to having a solid foundation of financial knowledge. Learn more about the Academy here!

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 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.