Well, now you have your receipts and invoices filed, what next? For many, nothing, the receipts and invoices will stay in the box and they will stay there until tax time. Is that ok? Sure, but then you will not know how much money you are making and if you are making a profit or not. Is that the right way? No, you can’t run your business like that, not successfully anyway. What do you need to next?
- At the end of each month you need to enter them into a program, I like to use Quickbooks.
- Enter all your sales invoices first, enter them as invoices and then receive the money against them so that you know who still has to pay you – very important information to know!
- Next, enter all your receipts and expenses for the month.
- If you have any accounts with any stores then make sure you enter these expenses into accounts so that you know how much you will owe.
- Make sure you enter the receipts on the right bank account or credit card – makes it easier to reconcile later! Hopefully you don’t have any bank fees or credit card charges, but if you do, go ahead and enter those in too.
At the moment, you are probably thinking ” Oh my gosh I don’t even know where to start and I don’t own Quickbooks or any other bookkeeping software”. Don’t worry, when your business is just starting you can keep this information easily on a spreadsheet. When you start experiencing growth then you really do need to think about using a bookkeeping system, like Quickbooks, to track everything. The earlier you start to do this the better. Remember – April 15th has a funny way of sneaking up on you!