Starter guide to bookkeeping for small businesses

how to do bookkeeping

Learn how to record purchase invoices, run accounts payable ledger, file supplier invoices and manage your cash flow. When running a small business, it is easy to forget to complete bookkeeping basics while you are concerned about getting the sales and delivering the goods or services on time. Start recording everything from day one, keep up to date and make sure you know the dates your accounts, tax, VAT, PAYE, etc are due. As soon as you set up your business, start recording all your costs and sales you make. These can still be deducted from your profits, which will reduce your tax liability.

How to set up Sales Invoices, the basics to include on a customer invoice, how to file your sales invoices and free Excel invoice templates / free Word invoice templates. If there is a query with a sales invoice, a credit note may need issuing. If a correction needs completing, a journal entry will be required.

Staying VAT compliant

One of the purposes of bookkeeping is to reconcile transactions with your bank accounts. Thanks to technology, reconciliation can happen for nearly any period of time you choose. This is because bank statements and bank transactions are recorded online. This is a golden rule, regardless of whether you run your business as a sole trader or limited company.

Closing the month involves grouping all accounts of the same type and understanding the totals. Doing it manually can be tedious and time-consuming, especially if your business has a lot of accounts. You’re checking for accuracy when reconciling your bank transactions with your ledger. It also gives small businesses a better picture of cash flow and the cash balance.

We provide accounting and bookkeeping for small business at a reasonable price which starts at

They draw from AAT’s world-leading qualifications and will quickly build your knowledge on key topics including bookkeeping, budgeting and cash flow. Bookkeeping involves recording and classifying all the financial transactions in your business. It’s keeping track of what your business spends and what your business receives. Many businesses issue invoices, and those invoices need to be tracked. They can be easy to forget and a nightmare when it’s bank reconciliation time. Whatever way suits you best, reserve some time on a regular basis to do some basic bookkeeping.

Even if you don’t do your bookkeeping yourself, you will still need to do a minimum of filing. Invoicing your customers or clients and gathering all proof of your expenses is part of your job. When choosing a software package, read carefully about any limitations and extra costs that are not covered by the subscription fee. Think about package upgrades, number of users covered by your licence, and how many transactions your licence pays for.

Budget for tax

If you’re self-employed in the UK, you need to file a Self Assessment tax return every year. This is used to declare your earnings from employment and other income to HMRC, and calculate how much tax you’ll need to pay. In order to do this effectively, construction bookkeeping your bookkeeping must be properly organised. A sure fire way to keep your accountant happy is to keep a separate record of your personal and business transactions and ideally have a digital record of all your business receipts and invoices.

Overtime Wikipedia


A nail technician’s directly how to calculate overtime pay cleaning pedicure baths between customers, cleaning and sterilizing private salon rooms between customers, and cleaning tools and the floor of the salon. A hotel bellhop’s tip-producing work includes assisting customers with their luggage. A parking attendant’s tip-producing work includes parking and retrieving cars and moving cars in order to retrieve a car at the request of customer. Paid time off – Payments to a worker for time not spent working, such as vacation, holidays, and sick leave. Reimbursed expenses – Payments from an employer to cover a worker’s out-of-pocket costs related to employment such as gas, food, lodging , and airfare. Non-discretionary bonuses – Bonuses received due to a contract, agreement, or promise. California employers must comply with both, since there are two sources of applicable law .

An exempt employee will meet the requirements of all three tests, but you should still consult legal counsel to determine their applicability to your employee’s specific job role and compensation. Your payroll service can make it easy to classify employees and calculate overtime correctly.

Talk to a Lawyer

As the phrase suggests, double time is twice the amount of a person’s hourly rate. If a person’s rate was $15 per hour, their double time wage would be $30 per hour. Under overtime rules, once an employee has exceeded their scheduled working hours they will have to be paid a premium rate. Again this rate varies from state to state and can vary between companies. This department regulates the majority of labor laws and decides the overtime pay requirements. Since this is a traveling sales rep, you’re faced with the question of how to know exactly how many hours they worked.

employee’s regular rate

Contact an Experienced Employment LawyerEmployers often take advantage of the fact that it can be complicated and confusing for employees to determine if they are entitled to overtime pay. In the United States the Fair Labor Standards Act of 1938 applies to employees in industries engaged in or producing goods for interstate commerce. The FLSA establishes a standard work week of 40 hours for certain kinds of workers, and mandates payment for overtime hours to those workers of one and one-half times the workers’ normal rate of pay for any time worked above 40 hours. Divide your total earnings for the workweek, including earnings during overtime hours, by the total hours worked during the workweek, including the overtime hours. For each overtime hour worked you are entitled to an additional one-half the regular rate for hours requiring time and one-half, and to the full rate for hours requiring double time. For example, independent contractors are generally paid for the task at hand and are not eligible for overtime hours. Other jobs—such as farmworkers, movie theater attendants, railroad and air carrier employees—are exempt from overtime coverage.

Cross-train employees

That way, they can work within their own parameters day to day, but they will not be able to exceed 40 hours in the week. While it may be safe to assume salaried workers can’t collect overtime, Robert L. Föehl, business law and ethics professor at Ohio University, said that couldn’t be further from the truth. Additional business labor laws employers must understand include the Family and Medical Leave Act, the National Labor Relations Act, and the Occupational Safety and Health Act of 1970.

What’s overtime pay for 12 an hour?

The rate for overtime hours is at least one and a half times the regular hourly wage ($10.88 per hour), also known as “time-and-a-half.” That means an hourly employee who works 42 hours per week at $12 an hour would be paid $12/hour for 40 hours and $18/hour for two hours of overtime.

However, the first step is the same for all salaried employees一determine the regular rate. To do this, take the employee’s weekly salary and divide it by the number of hours the salary is meant to compensate. For example, an employee who earns $400 for a 40-hour workweek has a regular rate of $10/hour ($400/40 hours). Overtime pay for hourly employees is the additional pay rate paid for working more than a specific number of hours in a week.

When employee overtime hours exceed amount of overtime credit

The state of California’s overtime laws differ from federal overtime laws in many respects, and they involve overlapping statutes, regulations, and precedents that govern the compensation of employees in California. A.No, California law requires that an employee be paid all overtime compensation notwithstanding any agreement to work for a lesser wage. Consequently, such an agreement or “waiver” will not prevent an employee from recovering the difference between the wages paid the employee and the overtime compensation he or she is entitled to receive. More times than not, a double time rate is established between a company and their employees. While some businesses pay their employees double time when they work on weekends or during a national holiday, others might double an employee’s rate if they work more than seven days in a row.

Rather, there are many exceptions and exemptions to that requirement. Under the federal Fair Labor Standards Act (“FLSA”), as well as both New York and New Jersey state overtime laws, most employees are entitled to be paid time-and-a-half when they work more than 40 hours in a particular week. The limitation on an hourly rate of overtime pay under title 5, United States Code, does not apply to overtime pay under the FLSA. Also, the maximum biweekly or annual earnings limitations on title 5 premium pay do not apply to FLSA overtime pay.

Will this regulation that goes into effect on August 5, 2022 change how I pay overtime to hourly employees?

The circumstances of each affected employee will likely affect how employers respond to the new salary level requirement. For employees who rarely or almost never work overtime hours, employers may simply choose to pay the overtime premium whenever necessary. Employers should also review their policies to make sure that the policies related to overtime work are clear and consistent with the implementation of the rule changes. Under many bonus plans, however, calculations of the bonus are deferred over a period longer than a workweek. In that case, the employer may disregard the bonus when computing the employee’s regular rate of pay until the amount of the bonus is determined. Only public employees are eligible for time off instead of being paid overtime under federal law. This is commonly known as “comp time” or “exchange time.” This time off must be credited at the rate of at least 1.5 hours of time off for each hour of overtime worked.

Marketing & Advertising Ideas for Bookkeeping Services


Having your contact information at the top of the home page so people can quickly get in touch with you is also usually a good idea. You may start providing many other services such as book renovation or repairs. You can restore practically everything when you understand the.

  • Hear firm owner Brady Meaux talk about his client onboarding process and how he’s sped up the steps on both the internal team side and external new client side to make everything run like a charm.
  • This is an accounting policy election and should be applied consistently to similar types of advertising activities.
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  • “Business cards are a relic of the past,” these websites practically scream at business owners.
  • A Bookkeeper is a service professional who helps business owners and companies keep track of the money they earn and spend.

Bookkeeping offers a stable career, room for growth and plenty of challenges for an entrepreneur, including finding clients to keep your business going. The Bureau of Labor Statistics estimates that employment prospects for bookkeepers will grow 14 percent in the decade from 2010 to 2020. If you are a bookkeeper, this gives you a good target for your marketing efforts.

Reward them with discounts, free service, or a gift for each successful referral. Be sure to network with other bookkeepers, ask questions, offer advice, and participate in online discussions. Access all Xero features for 30 days, then decide which plan best suits your business. With a foundation of knowledge, skills and experience, take the next steps in setting up as a bookkeeper. You might deliver an awesome service at a great price, but what if no one knows? Christine is a non-practicing attorney, freelance writer, and author.

Direct Response Marketing Ideas & How…

The internet has drastically changed the way businesses advertise their services. Instead of taking out an ad in the local paper, more businesses are starting to turn to online ads. Pay-per-click-advertising, or PPC, is one increasingly popular marketing option. Ads for your bookkeeping business appear at the top of a search results page and you pay each time someone clicks on one of the ads. If you are worried about high costs, most PPC campaigns allow you to set a cap to prevent running over your allotted advertising budget. Customers don’t easily trust anyone with their personal or business financial information.


This may include third parties who assist us in identifying which ads to deliver and third parties who deliver the advertisements. We may provide additional information that we have collected about you both directly and automatically to our partners. Advertising to the people most likely to become your customers is an efficient use of your advertising dollars. Bookkeeping is a business where you have access to customers’ private financial information. Factor this point in when selecting where to advertise and what you want your advertisements to communicate.

Accounting Fee Increase Letter: Sample Template & Tips

She has written legal and marketing content and communications for a wide range of law firms for more than 15 years. She has also written extensively on parenting and current events for the website Scary Mommy. From University of Wisconsin–Madison, and she lives in the Chicago area with her family. Consider whether your budget allows for paid advertising and marketing materials.

38 Email Subject Lines for Your Small Business in 2023 – The Motley Fool

38 Email Subject Lines for Your Small Business in 2023.

Posted: Fri, 05 Aug 2022 07:00:00 GMT [source]

If you do not already have a LinkedIn page, take the time to set up a profile. The connections you make online can be just as valuable as those you make in-person. The laws in the U.S. regarding personal information may be different from the laws of your state or country. Any such transfers will comply with safeguards as required by relevant law. If applicable, you may have a right to claim compensation for damages caused by a breach of relevant data protection laws. By using the Services, you agree to have your information used and transferred to the United States as set forth in this policy.

Spend your advertising dollars on advertisements that your target clients are most likely to see. For example, if you chose to target business clients, local organizations for businesses, such as the chamber of commerce, may have member publications in which you can advertise. Print advertisements help you build your company’s credibility and brand.


You might get better results normal balance in a local trade journal or business newspaper if you want to target small businesses that need bookkeeping services. Getting to know professionals outside of the bookkeeping industry is another great way to expand your reach. Think about building strategic partnerships with accountants, lawyers, doctors, investment advisors, and information technology professionals. All of these types of professionals might require the bookkeeping services that you provide.

A bookkeeping business is risky; you need to be good at accounting and finances to start a bookkeeping business. If you are specialized in accounting and willing to start a business in bookkeeping then it is a good idea. It is profitable because every company needs financial accounting for their day-to-day transactions. See why over 7,000 accountants and bookkeepers use jetpack workflow. Take the advice of social media consultants if you lack experience in marketing via social media.

GAAP Accounting Rules for Expensing Samples – Chron

GAAP Accounting Rules for Expensing Samples.

Posted: Sun, 23 Dec 2018 08:00:00 GMT [source]

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Place a free advertisement positioned by category and location on Craigslist. Advertise your business for free on websites such as Angie’s List and Yelp that let your customers leave feedback about their experience with your business. Good feedback on these websites can make your business more attractive to potential customers, so ask your happy customers to give your company positive ratings on these websites. At the end of the day, you may find that despite all your proactive marketing, you are still in need of more clients.

We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Some bookkeepers choose to obtain certifications for their business. Bookkeepers can be certified in various financial platforms, such as QuickBooks, or via training programs. You can also choose to become a certified public bookkeeper to market yourself better as a bookkeeping professional. The guidance does not provide for deferrals until the first time the advertising takes place, nor is there an exception related to the capitalization of direct response advertising costs or programs.


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Effective Bookkeeping Company Marketing Ideas

As you do it more often, eventually asking for referrals will become second nature. Create great-looking accounting and bookkeeping advertisements with our customizable graphic designs. Download layouts for InDesign, Illustrator, Word, Publisher, Pages.


It is also possible to use modern technology to provide bookkeeping services to customers in remote locations. Specializing your services helps you narrow your advertising focus and can give you a selling edge over other financial service companies. Inbound marketing is all about reeling prospects in.To make the most out of available prospecting opportunities, you must learn new ways of marketing a product, service, or business. Digital inbound marketing is one of the newer marketing strategies that’s gaining traction this year. The main advantage of digital inbound marketing is scalability.

  • Print advertisements help you build your company’s credibility and brand.
  • You can ask your family members and close friends for recommendations.
  • Some Catchy and attractive slogans also help you to advertise your business.
  • For example, let’s say your target market is entrepreneurs who are just starting out.
  • Experience workflow software that helps make sure nothing falls through the cracks.

If you have updated your website, you are already a step ahead. A great landing page that includes your name, address, and phone number is essential. If you want to dig further into SEO, there are tons of great how-to guides available online as well as a plethora of for-hire SEO consultants. Many bookkeepers have outdated websites, which can really turn off prospective clients. This may seem obvious, but your website should look fresh and be easy to navigate. Since so many people surf the web on their phones and tablets now, it’s also important that your site be optimized for mobile devices.

6 ways to make extra money in retirement – CBS News

6 ways to make extra money in retirement.

Posted: Wed, 28 Dec 2022 08:00:00 GMT [source]

This means reaching out to 10 prospective new clients can take just the same effort as reaching out to 10,000 ones. Businesses of all kinds will always need bookkeeping services. If you’re considering becoming a bookkeeper, read our guide to learn how to start a bookkeeping business in 2023. We’ll cover everything from the legal side of registering a new business to pricing, marketing and more. It’s simple enough to put a classified ad or display ad in a local newspaper touting your bookkeeping services, but keep the wording focused on what you offer and who your services can benefit.