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4 Simple Things You HAVE To Know To Operate Your Books Correctly

Have you ever felt stressed or overwhelmed about operating your business’s books? In this episode, let’s discover four crucial tips for effectively managing your business’s books and alleviating stress. Learn the initial steps to master the art of proper bookkeeping as a business owner. Let’s dive in!

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Wondering What’s Next?

Podcast Key Points:
0:00 – Episode Overview
2:00 – Tax Strategy
4:11 – Profit Requirement
5:02 – Entering Transactions Correctly In QuickBooks
6:32 – Entering Income in QuickBooks For Success/Strategy

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4 Simple Things You HAVE To Know To Operate Your Books Correctly – Ep. 136

There are a couple of things you have to know in order to operate your books correctly as a business owner, and I’ve got a couple that I’m going to share with you. Before we get into it though, if you’re just like I need help with this, Aimee and I need help with this. Now, you need to check out the link in the show notes for the Simplifying QuickBooks Tax Prep Workshop that I am hosting links gonna be in the show notes.

But this is the first couple points that we’re going to be covering. We’re going to talk about all seven things that you have to know how to operate your books correctly, the sheets, five ascending four key areas where most of your mistakes are found when it comes to your QuickBooks, and the actual must do’s that you need to do every single month so that you aren’t overwhelmed come tax season because you don’t have to be alright. And can’t wait to give you a preview on this. So let’s get to it.

This is the Your Money Your Life podcast. I’m your host Aimee Cerka, a money confidence coach for female entrepreneurs on the path to six figures. After over 10 years in the personal finance industry and multiple personal financial and medical crisis.

I was fed up with the lies that are being shouted from the rooftops by the Gurus and the media said I help you simplify, solidify and scale your money. By blending tactile money strategies with mindset work, you can create unstoppable finances together, you’ll finally figure out the money thing so you can make more money in less time without living off of beans and rice, or sacrificing your lifestyle. Episodes here on the podcast are short and sweet.

Being married, having four kids at home, homeschooling being the CEO running the household. I’m kind of busy. And I know you are too. So let’s keep it simple and get to the point. Welcome. I’m so glad you’re here.

Welcome back to the Your Money, Your life podcast. I’m your host, Aimee Cerka. We are doing a preview today, I’ve got seven simple things that you have to know how to operate your books correctly. And I want to talk about four of them on the podcast here today. Okay.

Tax Strategy Matters More Than Just an Accountant

First things first, you need tax strategy, not just an accountant. Okay, having a CPA having an accountant is great as a business owner, please, please, please do not be filing your taxes yourself. Oh, that’s a whole nother thing we can get into it.

Like even liability if you ever to get audited, which is another discussion, we’re gonna open a couple rabbit holes today because this is something I’m really passionate about. Okay, so you need tax strategy, not just an accountant. And not all accountants are created equal.

You want your CPA, you want your accountant, somebody that’s in your corner, okay? You need somebody that’s not scared of the IRS. I had a CPA that I was using for a while we’re gonna get to this in number two, but booger making, he was advising me to make decisions based off of his fear of the IRS and his fear of being audited.

Now, I sent me a message on Instagram, because I don’t want to put this out here. I’m happy to recommend the CPA accountant firm that I use, but they talk about you know, as long as they’ve been in business in business and as many tax returns that they’ve done, like your chances of being audited, if you’re doing it correctly, are like minuscule. And if you do what you’re supposed to, you’re following the law, we’re not like, going to jail here like, it’s nothing to be afraid of.

And again, it’s about removing that fear from your money, but you have to have your accountant, your CPA, on board rooting for you not being afraid of the IRS. So not everybody is created equal. You need somebody that’s going to be in your corner.

But the tax strategy is really important, because the strategy lowers your taxable income and a legal, moral and ethical way, we’re not doing anything that’s against the law. The tax code was written for business owners, because we create the jobs. So we are given benefits, we’re giving leverage, because we’re doing the thing that we know, creates the job. So take advantage of it. Don’t be afraid of it. Okay.

No Pressure to Make a Profit in a Set Time Frame

The second thing that you have to know is you are not required to make a profit within five years, three years, whatever you were told, this is what the other CPA would told me was like, Okay, we can’t claim those deductions anymore. Because it’s been, whatever, three years, five years.

That is not what the tax code says. All the tax code says is you have to work three to five days a week, a minimum of 45 minutes to qualify as a business. There is nothing about profitability in there.

So are you working three to five days a week for at least 45 minutes? I’m sure you are. So I’m sure we have documentation of that you are fine. Take the deductions that you are entitled to and have somebody in your corner that’s going to encourage you to do the things that you need to and that you are entitled to.

Mastering Transaction Entry in QuickBooks

Not again, not something Neither is afraid of the IRS. Okay. Two more things that I’ve got for you today that you have to know when you know, to be able to operate your books correctly. So that means you have to know how to enter your transactions properly within QuickBooks.

Now, of course, there’s other accounting software’s out there. I personally believe that QuickBooks is the best one. This because of its wide features, uses all the things you can use it if one if you want, but you have to enter your transactions properly.

That means not just setting up your bank import, and thinking you’re set, like that’s just one step. And actually, if you use the bank import, you’re more likely to experience errors. And we get into that inside the Simplifying QuickBooks Workshop.

Proper Income Entry Unveils Financial Insights

But you have to enter your transactions properly. And that will also know about like categories, which we’re also going to get to on the workshop, you know, what’s advertising, marketing, what’s continuing education, what counts is office supplies, legal equipment, like where to actually put things, because I know that’s a common concern that I hear all the time. Like, I don’t know what to categorize things.

And it’s something that we’re overcomplicating. And again, when we Simplify QuickBooks, when we do these things, when we know them, we make it simple, we take the fear out of it, and then you can show up, and you can go hit your revenue goals, because you’re not worried about getting audited, or whatever your QuickBooks if it’s up to date, all those things.

Okay, you have to know how to enter your transactions properly, more than just a bank import, you have to have them showing up, they have to be taken care of. Again, I’ll show you this in the workshop. The second thing, or I’m sorry, the fourth thing. Second part was to to I broke them up into twos.

The fourth thing, you have to know how to enter your income properly. And I have to say, Okay, this might just be the numbers turn to me. But it’s actually a lot of fun when you do it correctly, because then it shows up on your p&l like it’s supposed to.

Overcoming Fear and Simplifying QuickBooks

And you can see your income. And you can see the categories, all the stripe processing fees, or PayPal processing, processing fees, they’re all there like they’re supposed to be, because you did it correctly. So again, with the bank import, if you’re just hitting except on the deposit when it shows up. That’s not the proper way to enter your income within QuickBooks.

Now, if I am just like speaking Greek here, you have no clue what I’m talking about. Don’t worry, I walk you through all of this, like step-by-step really beginner level. But we have to know how to do these things.

Because if you don’t have your QuickBooks set up for success, like, especially right now, tax season, like your stress, but this is an all the time thing, because you know, when you’re out there, and you’re doing the thing, that you’re supposed to like to go get the clients and do those things, you know, in the back of your head like this isn’t set up.

So if you make the money if you hit the income goals, what is this going to look like? What, how much bigger of a hole? Are you digging yourself by waiting, when we can just figure it out? Okay,

Excel Spreadsheet vs. Accounting Software

We have to fix the issue ignoring does not do it. And as a side note, you need to have an accounting software, because if you ever were to be audited, your Excel spreadsheet is not cutting it. Now I have an Excel Spreadsheet that I copy data that I want to see from the QuickBooks but everything is in the QuickBooks, like it’s supposed to be in the Excel spreadsheet is my bonus, I also track like home office deductions.

That way, it’s all set up ready to go. But we’re gonna get into that again on the workshop on the monthly must dues.

Essential Steps for Business Owners

Okay, I think we got it, you have to have a tax strategy, not just an accountant, not all accountants are created equal. You are not required to make a profit within three to five years, the tax code does specify we only have to work three to five days a week, minimum of 45 minutes. I know you exceed that.

You’d have to enter your transactions properly, which means not just using your bank import, you have to stay on top of this, and then entering your income properly, which is a lot of fun again, because it all shows up like it’s supposed to on the p&l, then you’re deducting all the processing fees, like we talked about. We talked about that we’re gonna do the categories. We’re gonna figure this out.

We’re not going to dig a bigger hole by avoiding this any longer. Okay. Oh, and you can’t just use an Excel spreadsheet. You have to have an accounting software software, you should have an accounting software that way you were taking care of this. Be a business owner stepping into this, do what you were supposed to do have this in place, do the right things, and you’ll be set.

Simplifying QuickBooks Tax Prep Workshop

If you’re ready to dive deeper, you want more support, the Simplifying QuickBooks Tax Prep Workshop is coming up. That’s, that link will be in the show notes below. You want info on the CPA that I use send me a message on Instagram. Alright.

That’s what I’ve got for now. I want to see you on the workshop. Send me a message. Let me know which one of these was most helpful.

I find that well this is one of the things that we need to hear more of because there’s so much fear and stress anxiety when it comes to tech taxes, tax prep, taking the deductions, all the things so, I want to know, so full and we’ll see you next time. Bye for now.

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Aimee Cerka
Aimee Cerka

The Money Confidence Coach - She helps motivated women, like you create the happiness, family life, financial security, and long-term wealth they deserve. Create unstoppable finances so that when the next curveball is thrown your way... You're prepared. Click Here to Learn More

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