In the Quick Start Guide to QuickBooks post we talked a little about naming your revenue and expense accounts. The list of all your account names is called your Chart of Accounts.
As a new small business owner, you may be tempted to just use the account names and chart of accounts already provided to you in QuickBooks. However, with just a tiny bit of thought and effort you can create your own chart of accounts that will provide financial information to you that is actually meaningful. After all, the point of bookkeeping is to provide financial records that are useful, meaningful, and aid in decision making! (This post does contain affiliate links for products I use and recommend.)
As a small business owner the thought of setting up a bookkeeping or accounting system can seem daunting. However, good financial data is vital to your business success, and setting up a bookkeeping system can actually be quite simple.
There are many online accounting programs available today. QuickBooks is one of my favorites. QuickBooks is perfect for the very small business all the way up to very sophisticated businesses. It’s easy to use, but it can grow with you as your business expands. Let me show you how easy it is to get started with QuickBooks. (This post does contain affiliate links for products I use and highly recommend.)
There are so many fun parts to owning your own business . . . . business recordkeeping is not one of them! However, keeping good financial records is one of the best things you can do for your business. Not only will an efficient bookkeeping system make your life easier come tax time, but understanding your financial position will enable you to make better choices day to day.
Keep in mind that even if your small business is still at the hobby level, you still need to keep financial records. Unfortunately hobby income also has to be included on your tax return!