Starting Fresh | Setting Up Your Business Books for Success
Two weeks ago, we introduced our 90-day Financial Reset Plan, starting with getting a "Clean Slate" in January. While organizing receipts and categorizing transactions are important steps, some of you have asked an even more fundamental question: "How do I set up my books properly in the first place?"
Whether you're launching a new business, switching software, or finally getting organized, let's create a foundation that will serve your business all year long. Even if you've been in business for years, these setup steps will help you implement the Clean Slate portion of your 90-day reset.
Assess Your Needs
First, answer these key questions:
What types of income do you have?
- Payment for one-time services
- Recurring services/invoices
- Multiple service types/projects
How many monthly transactions?
- Under 100
- 100-500
- Over 500
Do you need payroll integration?
- Built-in payroll
- No payroll needed
Will you track inventory?
- Yes
- No
Who needs access to the books?
- Single user
- Team access
- Accountant collaboration
Your answers create a checklist of must-have features for your software choice. Don't pay for complex features you won't use, but make sure you have the tools you'll need to grow.
Gather Your Information
- Business registration documents (ie: EIN number letter, Secretary of State filing)
- Bank account details
- Credit card statements
- Current unpaid invoices (Who owes you right now?)
- Existing customer list
- Regular vendor information
- Current unpaid bills
Essential Setup Steps
1. Chart of Accounts
Think of this as organizing your filing cabinet:
- Income categories
- Expense categories
- Asset accounts
- Liability accounts
Keep it simple - you can always add categories later.
2. Banking Setup
- Only connect business bank accounts
- Link only business credit cards
3. Customer Management
- Import or create customer list
- Set up standard payment terms
- Create invoice templates
- Establish follow-up system for unpaid invoices
4. Product and Service Setup
- List your offerings
- Establish item categories
- Create service descriptions
- Set standard prices
5. Regular Processes
Daily:
- Record new sales
- Enter bills received
- File receipts
Weekly:
- Send invoices
- Pay bills
- Review transactions
Monthly:
- Reconcile accounts
- Review reports
- Track performance
- Set targets for next month
Avoiding Common Mistakes
Make Sure You
- Separate personal and business finances
- Set up proper income/expense categories
- Create clear naming conventions
Watch Out For
- Over-complicated categories
- Missing receipts
- Poor password security
- Delayed transaction entry
Your Action Plan
Week 1:
- Choose your software
- Set up core accounts
- Connect banking
Week 2:
- Enter customer information
- Create product/service list
- Set up invoice templates
Week 3:
- Enter outstanding transactions
- Set up recurring items
- Create basic reports
Week 4:
- Review and adjust systems
- Set up regular routines
- Schedule monthly reviews
FAQ
Q: How long will setup take?
A: Plan for 2-3 hours initial setup, plus 1-2 hours weekly for the first month to fine-tune your system.
Q: What if I have old transactions to enter?
A: Start with current transactions and work backwards. Focus on getting your system right going forward.
Q: Do I need an accountant to help?
A: While you can set up basic books yourself, consulting with an accountant about your category structure can save headaches later.
Q: What if I make mistakes?
A: All accounting software allows corrections. Focus on creating good habits rather than perfection.
Ready to Get Started?
Setting up your books doesn't have to be overwhelming. Start with these basics and build from there. Need help choosing the right system or creating a setup plan? Let's talk about what would work best for your business.
📞 Call: (214) 306-7850 📧 Email: hello@mybizbookkeeper.com
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