Bookkeeping tips for creative business owners
There are many reasons why bookkeeping is important for any business, but creative business owners may find they struggle with this critical task. After all, there’s a lot to do in a day, and staring at long lines of numbers may not be at the top of your “ideal activities” list.
But bookkeeping doesn’t have to be scary. There are some simple things you can do to take the pain out of these tasks. You’ll be surprised by how adopting some of these tips and tricks can help your business grow.
Here are some ways for creative business owners stay on top of their bookkeeping.
Keep your finances separate
The first piece of advice for a creative business owner is to separate your personal and business bank accounts. If you’re not a “numbers person” you will quickly become overwhelmed when you look at your bank statements – especially if everything from art supplies to toiletries are on the same receipt.
Eliminating this hassle is the first step to gaining clarity. When you have a dedicated account for all things related to your business, your financial picture becomes much more clear and easier to look at.
The widespread adoption of accounting software is the most exciting recent advancement for Michigan bookkeepers. This is especially true for those helping creative businesses. Keeping track of everything with paper and pen is a thing of the past, and that means it’s easier to stay on top of.
By linking your business account, all your expenses are recorded for you. You’re also able to take a picture of your receipts to have them automatically upload to your system. Everything is mobile, and that means bookkeeping is suddenly a much easier task than it was before.
Another great feature is the ability to send and keep track of invoices. The chances of missing a payment are greatly reduced when you adopt this tool.
There comes a time when it might just make sense to outsource your bookkeeping. While new software has made it easier to do your own books, the reality is that it still takes some dedicated time and attention that you may not have. Or maybe that you just don’t want to give.
Once it makes financial sense, consider hiring a professional bookkeeper. They can make sure you’re doing everything by the book, save you money at tax time, and can even offer insight to help you take your business to the next level. It’s a smart investment when you want to free up more time to do what you love, and it will pay off before you know it.
You started your creative business because you are passionate about what you do. Making a living this way is likely a dream come true, but bookkeeping can make it feel like more of a chore.
However, it’s important to remember that you are the CEO of this venture. It won’t continue to support you if you’re not staying on top of the books. It’s a wise investment to spend some time getting to know your finances and how to keep your bank accounts healthy. That way, you can continue to do what you love indefinitely.
While it’s often easier for many creative business owners to pretend their books don’t exist, the fact remains that you are running a business. Make use of the tips and tricks provided so that you can continue expressing your creativity in a profitable way.
If you have questions, contact us to learn more about how our bookkeeping services can ignite your creative business.