Updated: Nov 12, 2022
Are you a female entrepreneur who have decided to do your own bookkeeping? Kudos to you for taking that leap of faith to do your own bookkeeping.
As a founder of a profit first bookkeeping firm I have spoken to hundreds' of female business owners who have chosen to do the same thing.
I must say this is rather commendable to say the least.
Many times they feel that coding is all right because the software says so.
Is that really true?
The software is only as good as the information that is being entered into it.
The old saying of garbage in equals garbage out is true.
There is truly a secret to good bookkeeping which is so simple.
Bookkeeping is defined as the recording of payments going in and out of the business.
That should be plain and simple right?
Actually not so fast. All deposits are not equal.
Secret #1 to good bookkeeping is in understanding the key concepts which is extremally important. This is that secret that the software does not teach you. When you are not clear on what those concepts are the result is you end up overpaying in taxes because it appears you made more money than you thought you did. You turned in a profit and loss to the tax preparer who just took your numbers and plugged them in and was done.
Secret #2 proper categorizing of income and expenses. When you have mastered the concept of secret #1 you are now ready to properly categorize your revenue and expenses resulting is good bookkeeping.
Finally Secret #3 having the right software works wonders in giving you what you need after you have mastered secret #1 and #2. With the right software you are now in a better position to run your income statement and present to your tax preparer with confidence that it is correct and avoid over paying in taxes.
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