4 Simple Bookkeeping Strategies for Busy Business

Owners

Presented By Octavia Conner770-783-5214

Smart Accounting Servicewww.smartaccountingllc.com

Webinar Purpose/Goal◦Help you understand what bookkeeping is and

why it is important to the success of your business.

◦Provide you with 4 simple ways you can organize your paperwork and receipts today.

◦Highlight 4 key pointers to be aware of when completing your company books.

Welcome

Octavia Conner• My Story…….

•Launch Smart Accounting Services in 2009 while working full time.• Graduated from Strayer University with a bachelor's degree in accounting• Certified QuickBooks Pro Advisor 2012 & 2013• Certified Public Bookkeeper• Member of the National Association of Professional Bookkeepers

• A mother, a wife, a hard working business owner, a friend, a sister, a regular everyday person like you!

Let’s Get Started

What is Bookkeeping?

Bookkeeping is recording the financial transactions in your company

Financial Transactions are:

Cash you received in your businessPayments you made from your business

Why you need a Bookkeeping System?

To understand the true health of your businessTo be able to make wise business decision

To apply for a grant or business loanTo stay ahead of the competition

When should you begin record keeping?

Proper bookkeeping begins when the business idea forms in your mind. Before you make your first purchase you should establish a

money tracking system. I will provide you with 4 very simple systems later in the

webinar.

What documents to Keep

Receipts, Bank Statements, Client/Customer Invoices, Mileage Receipts, Old Tax Returns etc…

Simple Strategy 1 - EnvelopsUsing Envelops

1. Label 2 large envelopsi. Incomeii. Expenses

2. Each time you spend money place the Source Document in the Expense envelop

3. Each time you receive money place in the envelop the Invoice with the attached Deposit Slip.

4. At the end of the week or month total the Expenses and Income.

5. Subtract the Income from Expenses

6. The answer will be a Net Profit or Net Loss for your business.

7. Match the Source Documents with the bank statement.

Simple Strategy 2 - ExcelUsing Excel

1. Create an Excel Workbook at the beginning of each month.

2. Inside the workbook create two spreadsheets.1. Income2. Expenses

3. Once a week enter all your expenses and income that occurred within that week.

4. Total both spreadsheet.5. Print the spreadsheet and attach

the Source Document in date order.

6. Match the transactions on your bank statements with your excel spreadsheet.

7. Subtract the Income from the Expenses to determine your Profit or Loss

Simple Strategy 3 – Color Folders

Using Color Folders

1. Purchase different color file folders2. Each color will represent a transaction

a. Green – Money Received – Accounts Receivables

b. Red – Money Paid – Accounts Payablec. Blue – New Bank Statementsd. Yellow – Pending/Uncompleted work

3. As you receive the information place it in the pending folder until you’re ready to complete it.

4. At the end of each month total the documents in the Accounts Receivables and Accounts Payable folder.

5. Subtract your Accounts Receivables total from your Accounts Payable total.

6. Determine your Net Profit or Net Loss

Keeping the BooksForming the Profit & Loss Statement

Simple Strategy 4 - SoftwareTop 3 Small Business Accounting Software

Benefit It does the behind the scene work for you.

You can scan and upload your documents into the software to keep electrically

You can hire someone to complete the work for you leaving you free to focus on your business.

4 Key Bookkeeping Pointers

Keep all documents for at least 3 years.

Open a separate business checking account and do not mix business with personal.

Proper bookkeeping helps you determine what expenses are costing more and what service or product you are making the most money from.

Be sure to review your financial statements (Profit and Loss, Balance Sheet & Cash Flow Statement) at least once a month.

Questions & Answers Time

Congratulations!You should now know: How proper bookkeeping can help your business

succeed Simple ways to organize your receipts and

paperwork Documents you should keep

Time to put your knowledge to work! Good luck!

For help with organizing your paperwork & receipts email us now at

info@smartaccountingllc.com