Top Bookkeeping Tips for Small Business Owners

Managing money is hard when you're running a business. Most people start businesses because they're good at something—not because they love tracking receipts and balancing accounts.

Here's the thing: bad bookkeeping costs you. Missed deductions, tax penalties, not knowing if you're actually profitable. It adds up fast.

But bookkeeping doesn't have to wreck your life. With the right approach and decent software, you can keep things under control without losing your mind. Here's what actually matters.

Bookkeeping Tips That Actually Work

Start With the Basics

Bookkeeping tracks money. That's it. Money coming in, money going out. But there's some stuff you gotta understand first:

Double-entry accounting: Every time money moves, it affects two places in your books. Keeps things balanced.

Chart of accounts: Just a list of every money category you use—what you own, what you owe, income, expenses.

Financial statements: Reports that tell you if you're making money or losing it.

Keep Business and Personal Money Apart

Stop buying groceries with your business card. Stop paying business bills from your personal account.

Just Do This:

• Open a business bank account

• Get a business credit card

• Never use one for the other

Mixing money makes everything confusing. You won't know if your business actually works.

Pick How You Track Money

Two ways to do bookkeeping:

Cash basis: Write it down when money actually moves. Simple.

Accrual basis: Write it down when you earn it or owe it, even if cash hasn't moved yet. More accurate but harder.

Pick one. Stick with it.

Stop Using Spreadsheets

Get actual bookkeeping software. We use and recommend QuickBooks because it works.

Why It Matters:

• Does boring stuff automatically

• Makes way fewer mistakes

• Shows you useful info instead of just numbers

Actually Keep Records

Shoebox full of receipts doesn't count.

Get Organized:

• Save everything digitally

• Update stuff weekly, not once before taxes

• Sort expenses into categories

Match Your Records to Your Bank

Once a month, check that your records match your bank statement. Called reconciliation.

Do This:

• Pull up your bank statement

• Go through every transaction

• Fix what doesn't match

Catches errors while they're still fixable.

Understand Taxes

You owe taxes. Know when they're due. Know what you can deduct.

Don't Mess This Up:

• Put deadlines in your phone

• Keep receipts for tax deductions

• Ask a tax person if you're lost

Track Cash Flow

Cash flow is money moving in and out. Run out? You're done.

Pay Attention:

• Make a cash flow report

• Guess what's coming next month

• Plan for slow times

More businesses die from running out of cash than anything else.

Look at Your Reports

Reports show what's actually happening.

Check These:

• Income statement: Are you profitable?

• Balance sheet: What do you own? What do you owe?

• Cash flow statement: Where's money going?

Look monthly. Don't wait for problems.

Hire Help

You don't have to do everything yourself.

Get Someone When:

• It's too complicated

• You're spending all day on bookkeeping

• You'd rather run your business

Keep Up With Tax Changes

Tax rules change. Stay updated or pay for it later.

Stay Informed:

• Read newsletters

• Go to workshops

• Or hire someone who already knows

Real Talk

Bookkeeping isn't fun. Nobody starts a business because they love tracking receipts.

But you know what's worse? Not knowing where your money went. Getting destroyed at tax time. Running out of cash and shutting down.

Separate accounts. Real software. Good records. Monthly reconciliation. Know your taxes. Watch cash flow. Check reports. Get help.

That's how you keep your business alive.

We handle bookkeeping for Denver businesses. You run your business, we handle the numbers. Let's chat.