Small Business Bookkeeping 101: An Owners’ Guide To Bookkeeping and Accounting

A bookkeeper will keep your company’s financial records accurate and up-to-date by performing basic bookkeeping services.  This includes regularly reviewing source documents such as your monthly bank and credit card statements, invoices, payroll, and receipts, and recording basic accounting information for you – such as your monthly reconciliations – in your company’s books.

For small business owners, accountants help set up financial systems, analyze data, and make smarter business decisions.  They have the power to forecast business success, diagnose financial health issues, and increase revenue.  An accountant can save you significant money, time, and hassle. 

So while a bookkeeper focuses on the everyday tasks that maintain your business’s finances, accountants consider the big picture strategy to keep your business strong and growing.  Bookkeeping tracks and records important financial information.  Accounting puts that information to good use.

Does my small business need a bookkeeper?

Having a bookkeeper lets you devote your time and energy to the aspects of your business you love.  A bookkeeper will take care of the details, so you can run your business and do the parts that you do best.  A bookkeeper will review source documents and record basic accounting information for you.  A bookkeeper will review vendor payments and record expenses to manage your spending.  A bookkeeper will track your sales, so you know what’s most profitable and can focus on what works.  Finally, a bookkeeper will handle your taxes and maximize deductions.

What does a bookkeeper do for a small business?

Bookkeeping can help you make management decisions and help you finance your business.  As your business grows you may need to borrow money.  Your lender will want accurate financial statements to fund your loan.  Your business will post many transactions a week so you need a reliable system to track and report, so you make fewer mistakes and when you do, you’ll pinpoint it quickly.  Bookkeepers will be able to generate balance sheets, income statements, and cash flow statements.

How do I keep books for a small business?

Enter receipts as soon as you get them.  Your filing system or business accounting software should already be set up to do this task in a couple of seconds.  Reconcile your bank accounts every month when you get your statement.  Keep business and personal accounts separate. 

Categorize expenses correctly.  Report sales taxes on time – system that accurately tracks sales amounts, so you don’t accidentally overstate your sales and remit too much sales tax.  This should be done automatically, so you don’t have to spend time on it.

Xendoo’s cloud-based, real-time accounting system is fast, comprehensive, and affordable saving, time, money, and stress.  This technology delivers financial peace of mind to the underserved small business community by giving you timely visibility into your financial health.

Let’s talk! Are we a fit?

Strong relationships begin with open communication.  Live chat or schedule a call to get your questions answered.

If you have a question, it's easy to schedule a time to chat with your dedicated bookkeeper.

Let’s talk! Are we a fit?

Strong relationships begin with open communication.  Live chat or schedule a call to get your questions answered.

Will a small business bookkeeping business catch up on books?

Yes. If this still seems like too much work on the part of your business you hate most, Xendoo can take much of that load off your shoulders.  From bank reconciliations to automatic data entry of transactions to real-time tax coding, we do it all for a flat monthly fee that works with your budget. 

Being behind on your books is not uncommon for small business owners who wear many hats.  Xendoo provides peace of mind by catching you up quickly on bookkeeping and tax returns.  Let our small business accounting team get you out of the past and looking ahead.

Does small business bookkeeping include payroll?

Yes, bookkeepers handle the day-to-day recording and implementation of financial transactions, including payroll. 

Xendoo partners with Gusto for payroll services and we offer our clients, who sign up with Gusto through Xendoo, a 20% discount plus two months free.  All local state and federal payroll taxes are calculated, filed, and paid automatically.  You can schedule payroll to run automatically each pay period.  Gusto’s best in class software will issue and file your W-2s and 1099s.  Gusto’s payroll software offers flexibility in pay frequencies and pay rates.  It offers the ability to print checks or set up direct deposits. 100% online employee set up.  Need to reimburse employees for out-of-pocket expenses?  This can be done at the same time as payroll.  Employee management includes direct deposit, online onboarding, digital paystubs, and vacation and sick time management.

Should I use a freelance bookkeeper or small business bookkeeping service?

In most cases, small business owners can benefit from both services.  The benefit of choosing a bookkeeper is that the services are often less expensive, but you will be missing out on the financial analysis available from an experienced accountant.

When hiring a bookkeeper, you need to determine your purpose in getting one.  Are you losing track of your expenses?  Do you need someone who can regularly file your compliances?  Hiring an in-house bookkeeper is ideal if you have a medium-sized business and want to keep track of their day-to-day duties.  When you have a small business and you only need to consolidate your accounts once a year, then a freelancer is suitable.

Do I need a small business bookkeeping service if I am self-employed?

Even self-employed humans need support with their bookkeeping.  QuickBooks accounting software can be a great tool — but only if you’re using the tool right.  When you’re focused on running your business, it’s all too easy to put off data entry to some more convenient time — a time that may not come for a while. 

Xendoo plans come with a dedicated team and the Hustle plan is made for self-employed people starting at $195.  Xendoo offers a variety of packages because we know not all business owners are created equal, so you can choose the package that works best for you and your business.

Luanne is one of Xendoo's integration specialists.

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We support thousands of small businesses with their financial needs to help set them up for success. Want to get in on their secret? Learn more today.

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We support thousands of small businesses with their financial needs to help set them up for success. Want to get in on their secret? Learn more today.

Luanne is one of Xendoo's integration specialists.

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