Checklist to Help Clean your Books
Now, you’re getting the INSIDE scoop.
When I meet up with clients on Zoom, the first thing they usually tell me is: “Oh my gosh, my books are a mess”. I then always reply to them with: “There’s no shame in the game”.
Here are a few questions you can ask yourself to see if your system needs a deep clean:
Here’s how I can help you figure out if you need a bookkeeper in your life (specifically Open Book lol):
Do you know where to easily find your paper receipts?
What about those electronic receipts?
Can you easily pull out your spreadsheet/bookkeeping tool and tell me exactly how much profit/loss you’ve generated for a certain period?
Can you list out all of the subscriptions you’re currently paying for for your business?
If you charge GST/HST, do you have a system in place to save for repaying this (if you owe money)?
If you’re tight on time, do you have tools to help you accelerate your bookkeeping process (ex: Shopify integration in Quickbooks)?
Are you aware of what you can claim as business expenses?
If you’re using your car for business purposes, did you know you could claim a percentage of your expenses on your business Income Tax Return?
If you hesitated to answer these questions or were simply unable to answer them, then let’s start cleaning. 🫧
Here’s what you’re going to do
Open your bookkeeping system (spreadsheet or software)
Open a Google Doc, Word document or take out a paper and pen
And move through this checklist below.
WHERE IS YOUR MONEY MOVING? You must figure out from which bank accounts/credit cards your business transactions are coming in and out of. I recommend you condense it to one bank account and one credit card specifically for business purposes (easier to track).
FROM WHERE DO YOU GENERATE YOUR INCOME? For your income, write down where it’s coming from. If you’re invoicing clients through Honeybook, you’d write Honeybook (you wouldn’t write checks, e-transfer, or cash). If you’re simply emailing invoices to clients then write Emails. This will allow you to quickly go to the location to obtain your numbers. You’ll be able to open HoneyBooks or open your emails to search for what you’re looking for. If you have multiple sources where your money is being invoiced from, write it all down.
For me, for example, I’d write HoneyBooks, Squarespace (my website) and Etsy.
WHERE IS YOUR MONEY GOING TO? For your expenses, write down where it’s going out. You can start by drafting out general expense categories like Advertising and narrow it down as specific as you can, to for example, Facebook.
For me, for example, one of them would be Dues and Subscriptions - HoneyBooks Monthly Fee.
HOW ARE YOU DOCUMENTING YOUR TRANSACTIONS? You’ll need to figure out where you usually place your paper and electronic receipts, and if you don’t have a designated system in place for those, set yourself one.
For me, for example, my paper receipts go from a plastic sleeve to a folder organizer once they’re entered, and electronics go from my Receipts folder in my email to a Google Drive folder once entered.
WHAT’S NOT WORKING? This is a loaded question, but if the cleaning stems from you not fully knowing what you can claim or your spreadsheet/software isn’t calculating your numbers properly/connection issues, you can reach out for assistance for that (sometimes it doesn’t need cleaning, it needs to be fixed). If it’s just because you haven’t been tracking these items laid out above, then creating this checklist will help you.
Here’s an example of a checklist you can create for yourself:
Open my Scotiabank Chequing account, HoneyBook, Etsy, spreadsheet, and email.
One month at a time, enter or verify your revenue from HoneyBook into your spreadsheet. Save those reports to your Google Drive folder.
Then, one month at a time, enter or verify your revenue from Etsy into your spreadsheet. Save those reports to your Google Drive folder.
For your expenses, start with your paper receipts, and enter or verify all of them one month at a time. Store them in your paper folder after.
For your electronic receipts, go through your Receipts folder in your email, and add them one month at a time. Store them in your Google Drive folder.
Hopefull this helps you create a checklist to help clean up your 2023 books, but if you need further assistance, I’m always here to help! 😊
You can find more information on my Services or my Tools for DIYers page on my website.🫶
I’ll leave you with some cute freebies! Happy tracking!
I found some SUPER cute savings trackers on Canva. It’s a great way to stay on track all year round!
Disclaimer: The information contained on this Website and the resources available for download through this website are not intended as, and shall not be understood or construed as, financial advice. While the professional at the Company have education and background in the field of business-accountancy and the information provided on this Website relates to financial issues, the information contained on this Website is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.
