Whether you’re just getting started or you’ve been in business for years, solid bookkeeping habits make a big difference. Clean books don’t just help at tax time—they give you clarity, confidence, and control over your money.
Here are five simple (but powerful) tips to keep your books in good shape:
Keep Personal and Business Expenses Separate
This one’s a biggie. Mixing personal and business expenses is one of the fastest ways to create a bookkeeping mess. Open a dedicated business bank account and use a separate credit or debit card for your business purchases.
Not only does this make your books cleaner, but it also protects you legally—and saves your accountant a whole lot of detective work.
Keep Your Receipts (Yes, Really)
Even in a digital world, receipts still matter. If you’re ever audited, the IRS wants proof—not just a line on your bank statement. Use a receipt management app or take photos and upload them to your bookkeeping software. The key is to stay consistent.
Pro tip: If a receipt is unclear, write a quick note on it (or in the app) about what it was for. Your future self (and your bookkeeper) will thank you.
Reconcile Your Accounts Monthly
Reconciling means comparing your books to your bank and credit card statements to make sure everything matches. If you skip this step, you could be working with numbers that are flat-out wrong.
Do it every month. It’s much easier to catch and fix issues early.
Track All Income (Even the Small Stuff)
Whether you’re getting paid through checks, cash, apps like Venmo, or ACH—it all counts. Skipping over income, even accidentally, can mess with your financial reports and cause problems at tax time.
Make sure every dollar that comes in is tracked properly. Your reports will be accurate, and you’ll avoid surprises later.
Don’t Wait Until the End of the Year
Falling behind on your books is stressful—and expensive. Playing catch-up in December (or worse, right before taxes are due) usually leads to errors and missed deductions. Set time aside every week or month to stay on top of things.
Or better yet, hand it off to a professional so you can focus on growing your business instead of wrestling with spreadsheets.
Bottom Line:
Good bookkeeping habits don’t have to be complicated—but they do have to be consistent. These five tips will save you time, money, and a whole lot of headaches down the road.
And if you’re tired of trying to do it all yourself? I’m here to help.