The Marie Kondo Method for Bookkeeping

Anyone that knows me personally knows that I am a minimalist. Okay, I'm not an extreme minimalist but I don't have a lot of things. Everything in my house has a place and a purpose.

 It's the same when it comes to my business and personal finances. Sometimes we think we need to have an extensive plan and "stuff" to do with our finances but really it can be simple. Some people might thrive off of having seven different bank accounts, while others have an anxiety attack just thinking about. I fall somewhere in the middle. For my business, I have three accounts: Checking, Tax Savings and Business Savings. Not too many, but just enough to keep things categorized.

By being proactive and simplifying your bookkeeping, it makes handling money a lot less stressful. Here are a few ways to help:

Keep business and personal transactions separate.

If you've been around here a while, keeping business and personal transactions is ALWAYS my #1 tip of advice and this won't be new information for you. But you are new and haven't heard why this is so important, here's the deal: it makes it so much easier when you go to do your bookkeeping, tax deductions, record keeping, etc. Especially if you are someone turning your hobby into a business, I promise you'll save yourself so much time and energy down the road by separating your finances as soon as you make your first investment into your business. I have a post about how much to pay yourself and HOW to actually do it, and that would be... impossible to do without having separate business and personal accounts.

A quick note on keeping your transactions separate... Actually keep them separate. I have seen time over time where clients have separate accounts but they still don't keep the transactions separate. It leads to them coming to me confused on what is going on with their finances. If you have a business checking, use your business checking debit card instead of personal credit card when making a purchase for your business.

Create an easy way for you to receive money (automate where you can).

This tip isn't just for you, but for your clients as well. It'll improve your overall client experience! Platforms like Kajabi, Honeybook, or Dubsado are great options for creating an easy and simple invoicing system. I know people do it, but personally I recommend staying away from Venmo and PayPal if possible.

Another tip here is to only accept payments ONE way. Having multiple different ways people can pay you makes it so hard to keep track of your revenue (and have a clear picture of your finances). So instead of accepting Venmo, PayPal, Stripe, Check, Transferwise, and Square etc., just pick one. Especially if you have multiple offers, it'll be much easier to see which offers are performing the best if you have everything coming through one place.

Continually have up-to-date books.

This is another one that's not new if you've been around for a while. Schedule and plan dates for you and your finances, seriously! It can be EASY to fall behind on your bookkeeping (as a bookkeeper, this is something that even I have to schedule or I'll miss!). You don't want to wait until, before you know it, it's !!! tax season !!! and you've got 6 months worth of bookkeeping to do in a couple of weeks. Can you say STRESS?!?!

OR you can schedule time to do your books (or have someone do it for you... see the next step 😉) so that when tax season comes, all you have to do is send over all the info to your CPA, no stress involved. Sounds like a way better option, if you ask me!

Get help from a professional.

The best way to have simple and easy money management is to get help from a professional. My team and I specialize in creative business owners. We know the systems that you use in and out and we will be able to give you the insight you need to grow your profits. I've heard over and over from my clients that taking bookkeeping off of their plates has made such a difference. You will have us holding you accountable and keeping things organized, and helping you understand what's going on with your finances so you can make informed decisions in your biz. Want me and my team there to support you and your business? Reach out and I'll get back to you soon!

 Again, bookkeeping doesn't have to be overwhelming. If it is, reach out to a professional. Otherwise, I hope you found these tips helpful! My goal is to be able to spark a little more joy for you in your business by making the financial aspect of it less stressful. That way you have more time to do what you really love!