Accounting and bookkeeping are probably the least sexy part about running a business. And yet, they are the barometer that’ll tell us if there’s smooth sailing ahead or stormy seas. To prevent you from being caught off guard, here are three things that you’ll be glad you did:

Build a budget, be conservative. Having everything written down and tracked will keep you from being surprised at the end of the year. When you’re building out your projected costs, overestimate. So if you think something costs $100, maybe put it as $125 in your projected budget. Then, you should underestimate your anticipated revenue. This will help you keep your head above water.

Reconcile your books on a monthly basis. Forming this habit will give you the chance to catch small mistakes before they become huge headaches – and it’ll make filing your taxes easier (and faster) when the time comes. If you’re feeling old school, you can of course do this using an Excel spreadsheet, but I’m partial to QuickBooks myself. I’ve had friends use Gusto and have also heard good things about Zoho Books and Xero. 

Collect your vendors’ W-9s early. In a perfect world, you’ll have a vendor’s W-9 at the same time they begin working with you. If you can’t do that, then December works. Whatever you do, don’t wait till January: you’ll spend the first few weeks of the new year scrambling when you should be recuperating from the holidays.

Doing any one of these will save you some headache down the line. Doing all of them? You’ll be your accountant’s favorite client. If that’s something you’re going for. 

Until next time!

Dom Gelin
Admin Consultant
USCG 100Ton Captain