Bring Your Bookkeeping Home
By: Rachel Raupp
Bookkeeping is the silent hero of your business. It’s solid and reliable. It keeps you grounded, anchoring you down in one place when things become chaotic. Many factors may influence your business, but the numbers don’t lie. The numbers are the black and white of your business, the “this is it” aspect that cannot be twisted.
Why not bring this anchor into your home? You don’t need a computer - grab a notebook and start recording money in and money out. Keep it simple. Break it down per month, record your expenses, your income, everything. At the end of the month, do the math and see if you came out ahead or behind.
What did you spend your money on? You can see in writing where your money goes and how much of it goes where. You will probably be surprised when you look at how quickly those Starbucks coffees add up! If you want to cut down on eating out, look at how much you spent last month on meals out and aim to spend less this month. Set goals. Make plans to reach these goals.
Just like in bookkeeping, record your cash transactions and credit transactions. Credit transactions can sometimes be forgotten since tangible money wasn’t used to pay for the good/service, but should not be left off your personal books.
Did you lend someone money? Write it down. Did someone lend you money? Write it down. This is all important information about your own personal cash flow. Keep your receipts. If you make a return, deduct the expense and correct this change in your books.
At the end of every month, create a report for yourself. What do you notice? What would you like to change? The numbers do not lie. They only reaffirm exactly what’s going on, whether it’s in the four walls of your business or your home. Keep yourself anchored in your business and in your home – keep up with your bookkeeping and listen to what the numbers are telling you.