Bookkeeping is an essential part of any small business, but if you’re a new entrepreneur with limited funds, you may have to spend some time doing your self-employed bookkeeping. This is an essential skill for any freelancer or anyone self-employed who needs to keep track of their finances and accounts so they don’t get too out of hand in the future.

If you’re interested in self-employed bookkeeping as opposed to hiring a bookkeeper to manage the bookkeeping processes for your self-employed firm, there are a few things you’ll need to keep in mind. First, it’s important to always keep a record of all your transactions, no matter how big or small. A reliable log is crucial to any self-employed individual so you won’t have to go digging through weeks of messy financial figures when you need certain information. Lastly, there should be properly identified demarcation between business deductible expenses and expenses of a personal nature. You’ll also want to hold on to any receipts from business-related purchases. To do so in a neat and organized manner, prepare a special file or folder and divide it into categories such as “meals”, “travel”, and “cleaning”, or whatever other specifications you require. This way, all your receipts will be well-organized and easy to get to and filter through.

The next important thing is to invest in good quality software to help with your self-employed bookkeeping. Most software options allow you to keep a log of all your expenses and transactions. If and when you hire an accountant separately, the reports given by the software based on your entries will allow them to work more efficiently.

Self-employed bookkeeping can seem like a difficult and momentous task, but by keeping some basic steps in mind, you’ll be able to keep yourself and your business up and running smoothly and easily. The alternate option would be to engage a professional bookkeeping firm with experienced team and multi-application support at a fixed monthly fee to take care of your self-employed bookkeeping. Few of these professional bookkeeping firms also completes any backlog of your self-employed bookkeeping and offers 30 days money back guarantee if you are not satisfied with the work.