Bookkeeping basics plus#

5 Top Bookkeeping Tips for Online Boutique OwnersĪs you can see, bookkeeping is one of the cornerstones of your business. But, as you can see, it’s a critical component to boutique success. Sure, bookkeeping isn’t the most attractive part of being an online boutique owner. Solid bookkeeping is the firm foundation from which these dreams can grow and become a reality. Maybe you want your own physical store, or you just want to scale and expand. Once you know where you stand financially, you can start to plan for the future. Plus, this will allow you to set proper budgets for the future and make use of systems like profit first. And, as we’ve mentioned in previous posts, outsourcing is great for more family time and less overwhelm. It’ll also enable you to spot where you can potentially outsource. You’ll have invaluable insight into where you’re spending too much or investing too little. You can know, with confidence, what money you’ve got and what you owe. It allows you to instantly see where you’re at financially. Accurately see your boutiques financial health and spot trendsĪccurate bookkeeping gives you a true view of your boutique’s financial health. You could be hit by unexpected expenses (like merchant fees), and you’ll be unprepared for sales and income tax. If you rely on bank account bookkeeping or don’t have a system in place, you’ll find yourself in major trouble.

They don’t think they’re boutique is “big enough” to need bookkeepingĪs a boutique owner, you need to know what’s coming in and going out of your business.

When it comes to bookkeeping, a couple of common mistakes we see from online boutique owners are: Don’t let your hard-earned cash slip away by overpaying. If your books are in order, you’ll be able to find and claim back your small business expenses. Staying organized with your bookkeeping stops you from overpaying on your taxes. More money for you – hooray!Īre you a big fan of paying too much tax? Rhetorical question – of course not! No one is. Then, when April arrives, you won’t be scrambling around at the last minute because of a nasty tax surprise.

First off, keeping your books in check year-round helps you estimate your tax more accurately.

Here’s why… Why Every Online Boutique Owner Needs Bookkeeping in 2022īefore we dive into some tips, let’s take a moment to talk about why bookkeeping is SUPER important… A stress-free tax seasonĪs a boutique owner, you’re going to have to submit income and sales tax to the IRS. Accurate bookkeeping is crucial for you as an online boutique owner. It gives you a clear picture of money coming and money coming in. Bookkeeping, at its most basic level, is tracking and organizing what your business spends and receives. Our basic guide to bookkeeping for online boutique owners will give you the know-how you need to confidently manage your finances! Let’s dive in… What is Bookkeeping?Īllow us to take the sting out of the anxiety you feel when you hear that dreaded word. Nearly 75% of small business owners have little faith in their bookkeeping knowledge. In fact, it’s probably something you dread. The mention of the word “bookkeeping” is enough to send shivers down the spine of any online boutique owner.Įven if you’re a math whizz, bookkeeping for your boutique isn’t something you get excited about. They’re also called general ledger codes.Bookkeeping is Online Boutique Owners LEAST Favorite Word… Chart of accounts: A list of all the accounts you use to record financial transactions in your ledger.Income statement: Totals the revenue and expenses for a set period of time and demonstrates how the business is trading.

Bookkeeping basics plus#

Balance sheet: Lists the things your business owns and their value, plus the amounts your business owes.

Financial statements: Reports that shows the financial activities and performance of a business – two main ones are the balance sheet and profit and loss statement.

Expenses: Money paid out to keep the business running.

Revenue: Money coming into the business through sales, interest or dividends.

Equity: Money introduced and withdrawn by the owner or shareholders.

Liabilities: Amounts the business owes in unpaid bills, taxes, wages, or loans.

Assets: Things the business has bought and owns (or part-owns), inventory, and money owed to the business as accounts receivable.

Accounts: The categories under which all business transactions fall.

Ledger: The place where business transactions are recorded and categorized.