How to manage Bookkeeping for a bootstrapped startup?
As of now I am just keeping a tab on my business ( California LLC ) account to keep a track of expenses and since I have very less revenue I am able to just note in my book, but I am looking for an efficinet way to better my bookkeeping this financial year. Please share your tips or tools for managing bookkeeping.
I simply use Wave (no affiliation, just a happy customer). I considered using ledger or gnucash or something else but at the end of the day I don't want to spent too much time worrying about bookkeeping. I like how transparent they are. One of the first emails you get from the after signing up is how is it that wave accounting is free, and they explain how they charge for things like payroll and payment processing (i.e. accepting credit card payments) which allows them to keep their accounting product free.
At the end of the day, the beauty of one's own business is doing whatever one wants, so if micro-optimization of finances is something you like, ledger or beancount are awesome, you can write scripts and your own tools and processes. I personally would rather focus what I consider the interesting part of my business :)
I use Freshbooks and Gusto to great and simple effect in my one-person consultancy that's a C-corp for reasons. Income and expenses go in Freshbooks, payroll goes out through Gusto, I don't have to worry about much more. Quarterly reports on expenses are simple to generate. Cash accounting takes care of the rest.
There are any number of bookkeeping tools to suit your needs: Ledger, Beancount, Xero, Quikbooks, Gnucash.
Xero or Quikbooks are inexpensive and can be integrated with many different services, effectivly automating a good chunk of bookkeeping.
I use Quickbooks Online. I pay for somethings through their online payment services, and the rest I stick receipts in a folder to hand my book keeper.
This is definitely overkill for expense recording alone, but A) I also use Quickbooks online to generate invoices, accept payments for those invoices for people who want to use that method (some prefer using their own ACH solution), and B) I like having in in place for when I get bigger.
I have introduced countless people who never though they would need to understand bookkeeping and accounting with this awesome tool.
Even though the accounting/tax/etc. is probably very simple as the sole employee/director/owner of my company, I still have an accountant who I trust to do the books. The headache of learning that part of a business is something I'd rather outsource to someone I trust. It's the cost of running a business.
We use Truewind, a YC startup. They do our books, and it's way better than doing it ourselves!
Hire a bookkeeper.
If the business can’t afford a bookkeeper, it probably isn’t viable because bookkeepers are a cost of doing business.
Yes you can be your own bookkeeper and stagger along in zombie mode. Just realize that’s what you are doing.
Good luck.
If you have an accountant, ask them!