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What Do I Need to Do My Own Bookkeeping?

How do I do bookkeeping for a small business

What Do I Need to Do My Own Bookkeeping?

Outsourcing your bookkeeping to specialized bookkeeping services in San Diego is a quick and straightforward way to sharpen your focus on your business in Mission Hills. You will find this especially convenient when you are most strapped for time, such as during a boom in business or around tax season. But you may decide to take a different approach and try doing your own bookkeeping. If so, what tools and resources will you need? Read on to find out!

How do I do bookkeeping for a small business?

To manage your bookkeeping by yourself, you need to have the same information that a professional bookkeeper would need: either a statement of assets and liabilities or access to an online data storage. All of these are critical information which should be reflected in the books.

Here is an overview of essential small business bookkeeping tips for beginners:

  • Learn the essential bookkeeping, accounting and taxation terminology.
  • Create and study the balance sheet, profit and loss statement and cash flow statement.
  • Keep the statement up-to-date.
  • Save any and all bookkeeping records, making sure they are neatly categorized.
  • Keep your business and personal expenses separated.
  • Prepare for your business and personal taxes: payroll, sales and income.
  • Track your business expenses for tax and profit monitoring purposes.
  • Pick a bookkeeping and accounting method and stick to it.

Important bonus tips:

  • Be prepared for major start-up and overhead expenses, set up an emergency fund which is off limits for any purpose other than emergencies and attempt not to go into debt.
  • Consider hiring a professional bookkeeper to guide you through the process, at least on a temporary basis during the initial period.

How do I pay myself as a business owner?

For beginner company owners, there are two typical scenarios: either they take no salary during the initial period of running a business which could last for years, or they take so much that it’s bad for business. Your safest bet is to consult a professional who will likely advise you to either pay yourself based on your profits and limit your salary to 50 percent of profits or determine a reasonable salary amount depending on your basic personal expenses.

Is a bookkeeping certificate worth it?

Most experienced bookkeepers would probably have a negative answer to this question.

Namely, a bookkeeping certificate is worth it if you wish to build a career as a professional bookkeeper and want to market your skills, knowledge and service more effectively. Not only will it help you learn more, but also stand out in the enormous pile of resumes if you apply for a job in the bookkeeping department of some firm or a specialized bookkeeping company. Clients may favor a certified bookkeeper over one without such credentials and becoming certified can enable you to attract more clients, provide a high standard of service and charge more for your services.

But if you are only interested in handling your own bookkeeping and your business only has basic bookkeeping needs, there is no need to get certified. Doing your own bookkeeping during the initial stages of your business operations is an excellent way to learn as you go and keep your bookkeeping costs low. Of course, there is always the risk of error, so the safest and most reliable way to organize and regulate your bookkeeping is to hire a specialized bookkeeper, even if only temporarily.

How do I pay myself as a business ownerCustomizable bookkeeping services in San Diego

We are here to help you scale your business smoothly and efficiently from the get-go. At David York’s Tax Service, you will find a comprehensive bookkeeping service which involves tax preparation and more. We have experience in helping small business owners from all parts of San Diego and San Diego County. Contact us today to find out more now!