Be Your Own Bookkeeper

The actual job.

You can absolutely do your own bookkeeping. This guide walks through exactly what that involves, month by month, so you know what you're signing up for. Nothing here is meant to scare you off. It's just the actual job.

Pick a tool.

Track things somewhere other than a spreadsheet.

QuickBooks Online (Simple Start) Recommended

The most common choice, and the tool I work in day to day.
Wave

Free, and solid for very early-stage or simple businesses.
Xero

Clean interface, popular with service-based businesses.

the big one

Every month.

Categorize all income and expenses
Separate business and personal transactions Use a dedicated business account and card.
Reconcile accounts against statements why it matters The longer a mismatch sits, the harder it is to trace.
Track inventory purchases and quantities
Record equipment purchases correctly why it matters Getting it wrong can create cleanup work at tax time.
Review your P&L and balance sheet
Investigate unusual transactions

Common deductions

Business supplies
Inventory for resale
Rent
Software subscriptions
Marketing and advertising
Business insurance
Business mileage
Equipment and machinery (often depreciated)
Professional fees (accounting, legal)

Every quarter.

Prepare and file state sales tax returns why it matters A missed filing means penalties plus back interest, often found a year later.
Make federal and state estimated income tax payments why it matters Underpayment penalties apply even if you pay in full by April.
Review profitability and cash flow

Every year.

Prepare and file federal and state income tax returns
Review equipment and fixed assets for depreciation
Make year-end bookkeeping and tax adjustments

when it comes up

As needed.

Determine the fair market value (FMV) of gifts received from brands (generally taxable income)
Track business mileage throughout the year (don't try to recreate it at tax time)
Maintain fixed asset records (purchase date, cost, business use) for equipment like cameras, computers, and furniture
Collect W-9s from contractors before paying them, and issue Forms 1099-NEC by the deadline
Track home office information if claiming the deduction (square footage, rent/utilities, etc.)
Keep documentation for business travel, including the business purpose
Record owner contributions and withdrawals separately from business income and expenses
Retain documentation for meals and entertainment, including who attended and the business purpose when required

Good habits.

Never mix personal purchases into the business account or card
Save receipts and documentation, especially for larger purchases
Keep records organized year-round, not just at tax time
Ask before unusual purchases or transactions, rather than guessing

10 to 15

hours a month

Once your system is set up, budget 10 to 15 hours a month to stay current. Expect more in the months you're reconciling a backlog or closing out the year.

You can do all of this yourself.

Plenty of entrepreneurs do. If you'd rather hand it off, or just want a second set of eyes before tax season, let's talk it through.

No commitment, no sales pitch. If we're not a fit, I'll say so.

The entrepreneur's bookkeeping checklist.