5 Bookkeeping Tips for New Small Business Owners
One of the most important things a small business owner needs to learn is the basics of accounting and bookkeeping. I mean if your business is not turning over a profit, how would you know? For someone that is not good with numbers, I struggled a lot with the concept of accounting and bookkeeping. I still do until I was forced to get my acts together and learn it once and for all. I’m not exactly a pro yet but I like to think I’ve got my books handled for now until I can afford an accountant. So, here are five tips that have helped me that can help you too as a small business owner: 1. Start with Excel It’s so easy to get overwhelmed with all the tools and templates available for bookkeeping. But I’ve noticed that sometimes it’s better to start with what you’re familiar with. Most of us have a basic knowledge of Excel so you should start with that. Make sure you enter all the money that is coming in and all the money that is going out. Don’t forget you can also use it to create monthly budgets for your business. 2. Track every single expense One of the key things you need to do for your business is to track your expenses. If possible, keep all receipts and tellers. If papers are too stressful to track, download an expense tracking app. You can never go wrong with one. Tip: If you’re in Nigeria, use the Reach app to track your expenses. 3. Separate personal from the business account Whether you admit it or not, you’re not your business so you should treat it like a separate entity. Don’t be tempted to use your business account for personal expenses. Once your business starts making money, put yourself on a salary. That way, you can curb the temptation to dip into your business account. [bctt tweet=”Small Biz owners, listen! Once your business starts making money, put yourself on a salary – @Ebun_Oluwole ” username=”SheLeadsAfrica”] 4. Embrace technology As a small business owner, you should be thankful for all the apps and software that are available at your disposal. It saves you a lot of money you would otherwise have used to hire a professional. Once you get a hang of them, the accounting software is pretty easy to use. 5. Balance your books regularly Between your Excel sheet and your bank statement, there needs to be a reconciliation. Every month, try to balance your books by reconciling all your accounts with your software. It’s so easy to make mistakes manually when using Excel so it’s better to use your accounting software where you can upload your bank statements and reconcile your accounts accurately. Tip: Wave is a simple accounting software you can use. When your business begins to scale, don’t hesitate to hire the services of a small business accountant. Interested in contributing for She Leads Africa? Click here.
8 free business apps you should download right now
We’re not going to point any fingers but some of you are addicted to your phones. Not in a cutesy ‘I just like to capture moments type of way’, but in an ‘if I don’t find network right now I will slap someone’ kind of way. It’s not our place to judge but that type of addiction might demonstrate your priorities aren’t straight. If you’re spending more time on your phone chatting and double tapping instead of getting work done, you might soon run out of money to pay for that data bill. Don’t fret —after all that doom and gloom you know your home girls at SLA have come to hook you up. What if you didn’t have to choose between work and play on your phone. What if there were these magical tools that could help you track your sales while you take your selfies? That magical tool would obviously be two heads, and unfortunately for African parents across the world, we haven’t figured that one out yet. All we’ve done is find some cool mobile applications you can download right now to make it easier to get your work done while you’re on the go, looking for network signal. 1.Track My Life Ever wondered how much time you spend watching makeup tutorials on YouTube? Track My Life can help you figure out how you’re spending your time. However, it won’t be able to stop you from clicking the next video. This app can help you figure out which activities are taking up the majority of your time and if those aren’t high value tasks or helping you bring in more revenue, then they’ve got to go! 2. CamCard Did you lose the business card you got from potential bae while you were “networking”? With Camcard you can manage and exchange business cards right from your phone. Once you get a card, you scan details and they are stored directly in your phone. If you did mean to lose that card, what excuse are you going to use now? Your dog chewed it up? 3.Booksy Biz Picture this, your side hustle as a makeup artist is starting to pick up, you’re getting booked every other weekend and it’s getting harder to keep track of your new clients. This is not the time for you to forget about appointments and lose the goodwill you’ve built up. Booksy Bizz is a mobile appointment calendar and scheduling app that can help you manage staff, communicate with customers and manage appointments. This app will make it seem like you have a personal assistant working 24/7 when it’s actually just you in your pajamas, eating ice cream. 4.QuickBooks Online Keeping track of expenses is the worst!! Who even has time for receipts? says the person who doesn’t want their business running out of money. If you want to build a long term and financially sustainable business then you have to keep track of the numbers. QuickBooks let’s you invoice clients and manage your expenses. Now you’ll have no more excuses figuring out where your money went. 5.Perch Small Business Thanks to Perch Small Business you don’t need to reserve your Instagram stalking your friends and ex boyfriend’s new fiancée. You can now extend those skills to your competitors and their social media movements and know exactly what they’re up to. Use Perch to get a bird’s eye view of reviews, social posts and promotion for you and your competition all in one place. 6. Tiny Scanner Why is it that every single business transaction in Africa requires tons and tons of paperwork? I feel like the next time I go to KFC they’re going to ask for 2 passport pictures and a signed affidavit. If you’re in an industry that requires a lot of paperwork, then having access to your files in an organized manner is necessary. Tiny Scanner let’s you scan your documents and save them on your mobile device, iPad, or tablet anywhere you go. 7. HootSuite It’s great that Instagram allows to switch between multiple accounts, but what about the wahala in switching between multiple social media platforms and keeping track of them? Hootsuite allows you to manage multiple networks, schedule posts, and engage your audience all in one place. 8. Wunderlist Few things can compare to the relief you feel after checking off something on your to do list. This app will keep your business in sync whether you are managing multiple projects, delegating assignments to co workers or just making sure you actually eat during lunch time one day this week. Know any other cool apps that have helped you increase your productivity, keep your mind focused and helped your business grow? Share them with us.