If you're running your own business, you should have an organized way of keeping track of your income and expenses. So, let's talk about personal bookkeeping from an insider's view. More and more people are starting their own businesses and simply can't afford to hire an accountant, so they are deciding to do their own bookkeeping. There are a number of financial software programs on the market that are geared towards this niche market of individuals and are user friendly.
How can personal bookkeeping help you? Doing your own bookkeeping affords you the opportunity to have first hand knowledge as to what is going on with your financial affairs, whether this be of a personal nature, or of a business nature. Some ways that personal bookkeeping can help you are as follows:
- Saves you money;
- Easily keeps track of your income and expenses;
- Customizes various types of financial reports;
- Keeps track of the financial health of your business or personal matters;
- Allows you to access your personal or business financial information easily; and
- Makes tax preparation easier
Personal bookkeeping is not as hard as you may think it is. While it can be a bit tedious and time consuming at first, once you get the hang of it, you will be glad that you decided to do your own bookkeeping. Programs such as
Quickbooks and Quicken are two of the most popular financial software programs available. Incorporated within these programs are tutorials to help you familiarize yourself with how the software works.
So, now that you have decided to do your own bookkeeping, keep the following in mind:
- Keep accurate records of your income and expenses;
- Enter data on a regular basis;
- Track how you are doing financially by generating a Profit & Loss statement, if not monthly, at the very least, quarterly.
What is your motivation for wanting to do your own personal bookkeeping?