1 Year 1 Day: How to Catch Up On Your Bookkeeping
You promised yourself you wouldn't wait until last minute to do your bookkeeping...but, here we are!
The tax due date is looming and you haven't even touched your bookkeeping.
To be quite honest, you don't even know where to start!
I was once in your position, back when I was a Virtual Assistant and had no bookkeeping knowledge...unfortunately I ended up just adding up my income and saying to hell with figuring out the expense part!
I ended up paying more in taxes than I deserved to
And now I want to stop that from being your same fate.
I sometimes imagine myself as Wonder Woman, don't shatter my dreams!
OK, before we jump in, I want you to understand the task you are signing up for here.
1 year of bookkeeping in 1 day is
This may take some mental preparation, and if at first you don't succeed, spend as many days as it takes to succeed, because that due date isn't getting further away ;)
8am: Gather all your bank, paypal, and credit card statements
You need the entire year of every account. Download them all or you can work from the statement online.
8:30am: Watch this video tutorial
Watch the whole thing! It will explain your task at hand and then self destruct...no I'm just kidding. You can go back and reference it all day, but it is important that you watch it first!
8:45am: Download the magic bookkeeping spreadsheet
OK, so maybe it isn't magic, but you'll think it is with all the cool formulas I put in it to make it automatically create a financial overview for you ;)
9am: Start on Bank 1
Start typing! Add each months' transactions and don't forget to check the balance at the end of each month.
12pm: Lunch Time
Take a break! Stretch your legs!
1pm: Start on Bank 2
Same deal! If this is your savings account it probably won't take nearly as long.
2pm: Start on PayPal
Don't forget to add in the fees!
4pm: Start on Credit Card
I bet you're getting tired of typing at this point! And it's a good time to remind you that this isn't something you want to repeat next year...or even every month!
If you're in the right position, you might want to look into outsourcing your month-to-month bookkeeping so you never have to deal with this again ;)
7pm: Biz Expenses on Personal Cards
Scan through all of your personal statements for any business expenses and add those in on this special tab.
No need to check balances on this one.
8pm: Check out your Financial Overview
All that hard work for a little report?
Well yes! This is an important little report!
It shows you how much money you have in your banks, how much money you personally put into the business, how much you paid yourself, how much you made, how much you spent, and where you spent all your money.
But most importantly the net income number at the bottom tells you something juicy!
You can rename the net income number to taxable income!
So if it's positive, you owe your special tax rate on that amount of income, and if it's negative, you're business will likely owe very little to no taxes!
Need help making sure you don't get in this pickle again?
Check out our new DIY package where you can get the help you need and incentive to actually get your books done ;)