Bookkeeper Archives - Number Nerd Bookkeeping Solutions

January 23, 2018

Need Help With Your Books But Not Ready To Hire?

Paperwork is piling up. Bills are getting forgotten. And where is that payment from that client, anyway?

You know you need to hire a bookkeeper, but you’re just not ready. Yet you need some help. Where do you even start?

It’s time to get some of your processes and systems written down, especially when it comes to your finances. Not only will you stress less about where your bank balance stands, you’ll be able to automate some things to free up time.

There’s a handful of accounting programs out there that are perfect for the growing business, including Wave, Xero and (my personal favorite) QuickBooks Online. If you’re not ready to hire someone to help you with your bookkeeping, having one of these programs in your back pocket will at least get you started.

But there are a few things you need to know before investing in a system–and as you get ready to start using one.

Know What You Need it to Do

Not every accounting system is built the same. In theory, they should all be able to perform most of the same tasks. But the interface and usability of some systems may not suit your needs. Have a list of what you want your accounting system to do and keep it handy as you do some research.

Look online and compare products so you know what special features one system has over another. Don’t let price be your only deciding factor; ease of use and compatibility are huge components to consider. When in doubt, ask a bookkeeper!

Don’t ignore your books. When in doubt, ask a bookkeeper for help! Click To Tweet

Get it Set Up Right

There’s really no point in investing time and money into an accounting program if you’re not going to set it up correctly. Connect it to your bank accounts and use categories to sort your expenses and income. Whatever system you choose should automatically sync with your bank and categorize transactions for you. Take the time to get your new system set up–or hire a pro to do it for you. Many bookkeepers (myself included) offer one-time set-up fees for business owners who want to take care of their own books, 1:1 trainings and consulting on retainer options. There truly are people available to help!

Know What You’re Doing

You don’t need a degree in accounting to handle your own books if you have a straightforward business model. But you do need to know basic practices when it comes to bookkeeping. Know how to create invoices, enter and track bills, understand your tax liability and how to put that money aside. Other things to consider include establishing a budget, calculating cash flow and the rules and regulations when it comes to taxes and invoicing–some of which might require additional training to implement effectively.

You don’t need a degree in accounting to handle your books, but you do need to know the basics. Click To Tweet

Stay on Top of It

Like any part of your business, you need to stay on top of things. Look at your numbers regularly to ensure you’re saving enough for taxes and that payments are coming in on time. Every business owner should be acutely aware of the financial health of their business–even after they hire a bookkeeper.

The way you handle your books will literally determine whether or not your business is successful or has to fold. Not every business is ready for a bookkeeper at the same time. So be aware of where you are financially and, if you think you’re ready, reach out for a consultation with me and let’s start growing your business.

September 5, 2017

Help! I’m Not Making Money and I Don’t Know Why!

Even when a company’s sales are skyrocketing, they can still turn to me in a desperate, “Help! I’m not making money!” panic. Before I begin to fully analyze their books or their operations, I always ask how they are tracking their time. More often than not, they aren’t. The excuses range from having all salaried employees to working on retainer projects only. Regardless of the reason, I always encourage them to select a simple time tracking tool. Why? Time tracking can reveal so much about a business and the information gathered from time tracking can help them make budget conscious decisions.

Which time tracking apps do I recommend?

ClockShark and Harvest are my two go-to apps for time tracking. If you use QBO and are in the construction industry, I recommend Clockshark; if you need to manage several projects and retainers, I recommend Harvest.

ClockShark is a simple time tracking app designed for the service-based industry. Users can easily switch projects while in the field. I love how ClockShark uses GPS location to let you schedule people based on their GPS location. There are a ton of other great features, too! For example, users can manually take a break or choose to have their breaks automatically scheduled for them.

Harvest is another great time tracking application and is designed for managing projects, expenses, retainers, invoices, and more! I love how Harvest integrates with so many different applications, including QuickBooks, to generate custom reports. Read more about Harvest in my recent Harvest review article.

Ready to start time tracking?

If you’re ready to start tracking your time or get a better handle on your expenses, I’d love to show you more about these easy to use tools! Contact me with questions about time-tracking or other bookkeeping needs.

August 22, 2017

What is a Number Nerd Review?

With summer in full swing, you probably are not even thinking of year end. But, there are only four months left in the year and it is the perfect time to make sure your books are on track!

I can’t tell you how many conversations start with, “Help! My books are screwed up!”. The first thing I always recommend is my “Number Nerd Review”. The Number Nerd Review is an 18-point checklist that I use to review your books from beginning to end, ensuring everything is set-up properly, and pinpointing your problem areas. Here are some of the things that I include in this initial review:

Don’t Wait Until Your Books are a Mess

You don’t need to wait until your books are completely messed up books in order to benefit from a Number Nerd Review. There are plenty of other warning signs and red flags along the way that should alert you that it is time to get a second opinion.

Top 10 Signs You Need a Number Nerd Review:

If the following situations sound familiar, it is likely that you would benefit from a Number Nerd Review:

You have no idea how much you money you make.
You’re not 100% confidence in your bookkeeping skills…or your bookkeeper!
Your bank balance and QuickBooks balance do not match.
You are manually recording and coding transactions.
You don’t have any bank rules to automatically code your transactions.
You have negative accounts.
You mess something up in your bank reconciliation and can’t find the undo button.
You are not using the undeposited funds feature in QuickBooks.
Something is wrong with your accounting file, and you’re not sure why.
You need training on how-to use your accounting software.

What happens after the review?

After our review, Number Nerd Bookkeeping will prepare a detailed outline of problem areas within your books. From there, we offer multiple options for fixing the identified problems. Sometimes our clients prefer for us to provide training and consult them on how to fix the problems themselves. Other times, clients prefer a more hands-on approach; they hire us to cleanup the mess and completely take over their bookkeeping needs from that point forward. Bottom line – from cleanup, to training, to email support, to monthly bookkeeping, we will provide as much or as little guidance as you need to ensure your success and clean up your books!

As a bonus, we always include a workflow review with our Number Nerd Review. We evaluate your current workflow process and identify time-saving adjustments!

Ready to get started? Complete Number Nerd’s questionnaire and schedule your initial consultation today! We’d love to help you enter year end with confidence that your books are in order!

April 20, 2017

What is Bookkeeping, Anyway?

You hear a lot about keeping your books and making sure you’re on-budget. But what is bookkeeping, anyway? And what does it entail, when it comes to your business?

The official definition of bookkeeping, according to Google, is the activity or occupation of keeping records of the financial affairs of a business.

Okay, great. But that still doesn’t really tell anyone what, exactly, is included in bookkeeping.

In general, quality bookkeeping gives business owners a financial picture of a business during a specific time period. It’s the day-to-day recording of income and expenses; the details of your finances. And it allows the business owner and her accountant to see the big picture of what’s going into (and coming out of) the business.

Bookkeeping includes your invoicing, payments, purchases and categorizing each transaction so you can see what you’ve spent (and earned) in different areas of your business.

If you’re not keeping track of your books—either on your own or with the help of a bookkeeper—you’re doing a disservice to yourself, your team and your customers. You may know how much is in your bank account at any given point, but you likely can’t project where you’ll be a month from now. And that puts you in a position where you could run out of cash or you could be investing back in your business but don’t because you don’t think you can afford to.

If you don't have a handle on your books, you're doing a disservice to more than just yourself. Click To Tweet

When you have a good handle on your books, you have more power over your business. You can look at the numbers and make changes, before a financial emergency occurs. If you’re consistently earning more than you budgeted, you can easily see what part of your business is growing—and plot out ways to keep the growth moving. If you find that your dollars aren’t stretching as far as you expected, you can look at where your books are off and adjust your spending accordingly.

Whether you’re doing your bookkeeping yourself or you hire a professional bookkeeper, these are just a few things that you need to be doing on a regular basis in your business:

Tracking your revenue and income streams
Reconciling and categorizing transactions
Reviewing payroll and compensation of team members
Adjusting your budget to meet your business’s needs
Analyzing your expenses to ensure you’re not paying for anything you don’t need or use
Setting aside about 25 percent of your incoming revenue for taxes

First quarter of 2017 is long gone and we’re several weeks into second quarter. If you haven’t taken a moment to review your books, the time is now.

March 30, 2017

My Story: My Dive Into Business Ownership

A few months ago, I told you about why I got into bookkeeping. It was kind of an accidental journey, one that turned out for the best. And one that allowed me to turn to business ownership not too long ago.

In July 2015, I joined the Stacy K Academy because I wanted to master my craft—not because I aspired to start my own business. I was already working with a few clients on a contract basis, but hadn’t really thought about growing that.

Biz ownership was an accidental journey, but one I fully embrace. Click To Tweet

The program was delivered live but I had to watch recordings of the live instruction because I was working full time. It was a huge time commitment to take a class of this magnitude, but I was determined to make the most of my investment.

What I found was that Stacy goes way beyond sharing her systems and processes; she teaches you how to actually set up and run a business. From contracts to pricing structures, she gives it all to you. And these elements are some of the things that I found most beneficial in the program.

I started implementing what I was learning right away, both with my own clients and in my job. I had already been talking to Stacy and following her, taking most of the free information she offered and putting it to work.

I spent my lunch hours at my day job putting Stacy’s ideas into action, setting up processes and putting together systems. By the end of 2015, I knew I wanted to run my own business full time.

My contract work quickly grew from 3 to 10 clients over the last few months of 2015. Then in 2016, the opportunity presented itself to go all-in in my business. So I took that opportunity and ran with it.

Over the last 14 months or so, business continues to grow and I continue to hone my craft so I can be the best resource possible for my clients. I’ve tested out project management and accounting programs like 17 Hats, Teamwork and Harvest and have put all of these to work in my own business.

Make no mistake: starting my own business was a challenge. It’s been a lot of long hours, frustration, changing direction and time in front of the computer. But what I’ve learned has helped me grow as a person and a business owner and I wouldn’t have it any other way.