It has become apparent over the last few years that not all bookkeepers know how to correctly record income that Lawyers received if they are paid a retainer. Here are three examples of how to record income correctly if (1) you receive a retainer and record all income to one category, (2) you receive. a retainer and record income earned to different categories in stages or (3) you are paid after the settlement of a case.
Read MoreBudgeting is all about planning for success. By creating monthly, quarterly, and yearly budgets, entrepreneurs can set realistic financial goals and establish clear parameters for their business operations. Budgets serve as a roadmap, guiding entrepreneurs to make informed decisions and allocate resources effectively.
Read MoreThere is a lifeline out there, you just need to be ready to accept it.
If you have read the book “the Compound Effect” by Darren Hardy, the main theme is that you only have to make small changes consistently to lead to big changes over time. Being overwhelmed because you feel your books are a mess or not up to date is not where any of us want to be but we somehow ended up here. Many small business owners usually find come January/February we are scrambling to get our financials to our tax preparer and many of us swear that this year will be different but 12 months pass and we are back in the same boat.
There are four things you can do now and one you may have already done so there is less to do.
Separate your business accounts from your personal accounts
Set up 3 business accounts - 3 bank accounts (“Operating”, “Tax Savings”, and “Profit”) and 1 business credit card
Invest in a cloud based accounting system and learning how to use it
Commit to work on your accounts 1 hour a week or hire a bookkeeper if the amount of time spent (charged at your hourly rate) is greater than the cost of a bookkeeper.
Being an entrepreneur is a rewarding. The wonderful thing about being an entrepreneur is you get to choose what hours you work, what days you work and where you work. For me, becoming an entrepreneur was born out of a desire to be able to travel with my husband, who travelled (before COVID-19) about 150 nights a year and still do what I loved – bookkeeping.
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