Starting a business is exciting—but let’s be honest, the financial side can feel overwhelming fast.
You didn’t become an entrepreneur to do spreadsheets, right? Still, keeping your books in order is non-negotiable if you want to run a healthy, profitable business.
The good news? You don’t need a finance degree to set up a simple, functional bookkeeping system that works. At Your Bookkeeper On Call, we specialize in helping entrepreneurs and small business owners set up easy-to-use systems—whether you want to do it yourself or get expert support on demand.
Here’s how to get started, step by step.
Step 1: Separate Your Business and Personal Finances
This is step one for a reason—it’s that important.
Why it matters:
Mixing personal and business transactions creates a mess come tax time, makes bookkeeping harder, and can even put your legal protections at risk (especially if you’re an LLC or corporation).
What to do:
- Open a dedicated business checking account
- Get a separate credit card for business expenses
- Use these accounts exclusively for business transactions
🔐 Pro Tip: Keep it clean from day one—it’ll save you hours (and headaches) later.
Step 2: Choose a Bookkeeping Method
You have two main options:
1. Cash Basis (simpler)
You record income and expenses when the money actually moves in or out of your account.
2. Accrual Basis (more advanced)
You record income when it’s earned and expenses when they’re incurred—even if money hasn’t changed hands yet.
Which one is right for you?
Most small businesses start with cash basis because it’s easier to manage. But if you’re planning for growth or want to work with investors, accrual might make more sense.
If you’re unsure, ask us—we’ll help you choose the right fit.
Step 3: Pick the Right Bookkeeping Software
A solid tool makes everything easier. Here are a few top picks for small businesses:
| Software | Best For | Notes |
|---|---|---|
| QuickBooks Online | Most small businesses | Feature-rich, industry standard |
| Xero | Startups, growing businesses | Clean UI, good integrations |
| Wave | Solopreneurs & freelancers | Free, simple to use |
| FreshBooks | Service-based businesses | Great for time tracking & invoicing |
Don’t overthink it. The best software is the one you’ll actually use.
💡 Need help choosing or setting one up? We offer live, on-demand coaching to walk you through it.
Step 4: Set Up a Chart of Accounts
This is just a fancy term for organizing your income, expenses, assets, and liabilities.
Think of it like labeling folders in a filing cabinet—you’re giving each transaction a “home.”
Some common categories:
- Income: Sales, service revenue
- Expenses: Rent, software, advertising, subcontractors
- Assets: Bank accounts, equipment
- Liabilities: Loans, credit cards, taxes owed
Your bookkeeping software will usually come with a default chart—but you’ll want to customize it for your business.
Step 5: Create a Bookkeeping Routine
Bookkeeping is like brushing your teeth—it works best when you do it regularly.
Weekly tasks:
- Record and categorize transactions
- Reconcile your bank accounts
- Upload receipts or invoices
Monthly tasks:
- Review profit & loss statement
- Track cash flow
- Pay bills and invoice clients
Quarterly:
- Set aside money for taxes
- Meet with your bookkeeper or accountant (or join a coaching call with us!)
Step 6: Store and Organize Documents
Receipts, invoices, tax forms—they all matter.
Use a system to:
- Scan and save receipts (apps like Hubdoc, Dext, or just Google Drive work)
- Keep digital or physical folders for each tax year
- Store documents safely for at least 7 years (IRS requirement)
Bonus: Know When to Get Help
There’s a difference between DIY and doing it alone. Whether you want to handle your books yourself or delegate it completely, the key is having support when you need it.
At Your Bookkeeper On Call, we offer:
- ✅ Live bookkeeping and accounting services (when you need it, not on someone else’s schedule)
- ✅ DIY coaching for entrepreneurs who want to learn how to manage their finances
- ✅ Clean-up and catch-up services if you’re behind or just getting started
💬 Not sure what you need? Let’s talk. Book a free discovery call and we’ll help you figure it out.
Final Thoughts
You don’t need to be a “numbers person” to have solid, reliable books. You just need the right tools, a simple system, and a bit of guidance to stay on track.
Starting with these steps will set you up for:
- Better decision-making
- Easier tax time
- Financial peace of mind
Ready to set up your system the right way?
Let’s get you started—schedule a free consultation with Your Bookkeeper On Call today.
📞 Book Now
