Bookkeeping & Business

by | Jul 31, 2019 | Uncategorized

We would like to introduce our first of several guests posts this summer.  Please meet Jenna our friend and amazing bookkeeper.  She is a fellow bossbabe and has some tips for us at this point in the financial year. 

So, the focus of this post is to share some mid-year bookkeeping tips. I do hope you’re all enjoying this beautiful summer, (as you should since it only lasts a couple months) but not forgetting the daily/weekly routines of keeping your business in order. Many times, we get distracted halfway through the year and start misplacing receipts, forgetting that HST is due or you stop tracking your mileage. We start the year off so strong and organized and with a plan, but halfway through we get lazy and by the end of the year we’re scrambling to find those receipts or bills to get caught up again. 

Do You Drive a Car?

Firstly, keep up with your mileage! I know it can be a pain, but honestly, at tax time this is the biggest issue my clients have. You need to keep record of where you went and the kilometers it took to get there and back. Or at least, write down the address you went to and on what date so you can calculate the KM later through google maps. The more information you keep, the better. If you don’t keep a log that always stays in the car, then write the KM on the back of a gas receipt or the restaurant receipt that goes with that work-related trip. Then file it away.

Don’t Lose your Papers

Secondly, keep track of those gas, restaurant, coffee receipts! I have a small plastic envelope/sleeve thing that stays in my car all year. Every time I meet a client or go to a meeting, I write it down and put that note in the sleeve. Every time I fill up on gas, the receipt just goes in there. Every time I get coffee with a client, the receipt just automatically goes in the sleeve and once a quarter (or so) I empty it, I update my accounting software and then file it away. As my daughter is always saying… “easy peasy”. 

Pay Your Bills!

 Hopefully at the beginning of the year you created some sort of schedule for paying your regular expenses and monthly bills but if not, it’s never too late to start. I write them all down in my monthly planner. Just before the end of the month, I start filling in the next months bills that come out automatically like mortgage and car payment. Next, I fill in the other fixed costs that may vary in price like electricity and water but that need to be paid on time. After that, I think about the accounts receivable that will cover these payments. Will you have a profit or loss? Do you have to find “one more job” to cover that last bill or are you growing at a comfortable rate that making these bills go away is “easy peasy”? This is actually a great way to introducing budgeting in your business or personal life. But more on that next time.

Lastly, keep up with your bank reconciliations. It’s important to make sure you’re not double entering expenses or forgetting any. You also want to make sure that the cheques you deposit or the e-transfers you receive are safely in the bank as well.  So, keeping an eye on your bank and credit card statements is very important. 

Now, if all of this seems way over your head or that bit of anxiety is starting to freak you out because you’ve fallen behind – DO NOT PANIC! It’s not the end of the world and it can be fixed. If you need assistance, get in contact with a local bookkeeper, do your own research or attend a bookkeeping 101 class. Even talk to other business owners and see what they’re doing that works. But please, do not be an ostrich and bury your head in the sand when your financials get too much for you to handle. Find a way to “mom boss” your way through it!

Looking for some assistance with Bookkeeping in your personal or professional life?  Visit Jenna Idzerda on Facebook and schedule time to chat.  You will be glad you did! We sure are!!

Like what you see? Let's talk!

4 + 2 =