One of my gorgeous group members wanted to know about accounting and bookkeeping. So here is what I do. I can’t tell you all the other ways cos I only do it one way so I hope this helps!
I really enjoy bookkeeping, but the nitty-gritty of the next bit is what I don’t have any interest in. I have a fabulous accountant who deals with all that for me. She loves it! It’s what she does. Luckily for me, I don’t have to worry.
Most self-employed people think they have to do all the jobs all the time and that really isn’t true. You can’t wear 12 hats and expect to be great at all of them. If this or any other task is not for you then delegate and concentrate on making money the best way you know-how!
Now the lecture is out of the way… I love being organised. Love it a LOT! In January each year, I do 12 envelopes with the month and year written on them. They then live in the cupboard above my notice board in the kitchen.
Each day or week I put in my receipts and keep on top of those that way. For things I buy online that don’t come with a physical receipt I will have a folder in emails and on desktop and I add the receipts & invoices to those folders. So that when I come to do my tax return – or get it ready for my accountant should I say, I know that it is all there and I don’t have any drama.
Then at the end of the month, I put that envelope into my accounts box ready for when I sit and do my spreadsheet.
In regards to income, I write mine down in my diary so that I can see it. At the end of the week, I write down how much and the same again at the end of the month.
I have my income and my receipts all organised.
Then when it’s time, I always said I would do it monthly, but it never happened! I will do a massive sesh so I will take a day off and do the whole year in one hit. I will use the spreadsheet my accountant gave me to use and fill it all in.
Once that is done, he takes over and does the rest for me.
There are tonnes of ways of recording information you just need to get into the habit of it. Search on the app store and you will find a tonne of apps for income and expenditure. Accounting apps and who knows what else. Or you can buy specific books for in and outgoings, just search on google. Though most things are all online these days.
I much prefer the pen and paper way as it is a system that works for me.
My advice for you would be to get some sort of receipts system going as I have so you don’t have the big panic mode when you can’t find something from 6 months ago and start crying everywhere and then find a bloody good accountant. Ask around for recommendations. I got stung by a rubbish one who ended up costing me 3 times the amount so do be careful and always go on recommendations.
Hope that has cleared up some of your questions.
Since writing this – I have started using Quickbooks the Self Employed version. Check it out.
Love & Success