Bookkeeping basics for small business

If you can keep a clean record of money in and money out, you have already done 80% of the work.

1. 1. Separate accounts

   Open a separate checking account for business so personal and business money never mix. This single habit saves hours at tax time.

2. 2. Categorize every transaction

   Common categories: revenue, software, supplies, contractors, advertising, fees. Pick a small set and stick to it.

3. 3. Reconcile monthly

   Once a month, match what your bank shows against what your books show. Fix the difference while it's still small.

4. 4. Cash flow > profit (in the short term)

   A profitable business can still run out of cash. Watch what's actually in the bank, not just what your spreadsheet says.

Educational only — not financial advice.