How to Set Up Bookkeeping for a Small Business
Clean bookkeeping from day one saves stress at tax time. Here is how to set it up for a small business.
Tools you'll need
Step by step
- 01
Separate business and personal
Open a business bank account and card so your books are clean from day one.
- 02
Choose accounting software
Set up QuickBooks or Xero and connect your business bank and card for automatic feeds.
- 03
Set up your chart of accounts
Use a simple chart of accounts that fits your business; your accountant can tailor it.
- 04
Automate receipt capture
Use Dext to snap and file receipts and bills so nothing is lost and manual data entry disappears.
- 05
Reconcile regularly
Match transactions to your bank at least monthly so your books stay accurate.
- 06
Review reports and taxes
Check your profit and loss monthly and set aside money for taxes. Loop in an accountant quarterly.
Frequently asked
How do I set up bookkeeping for a small business?
Separate finances, pick accounting software, connect your bank, automate receipts, and reconcile monthly.
What software should I use for bookkeeping?
QuickBooks or Xero for the ledger, plus Dext to automate receipt and bill capture.
Do I need an accountant?
Software handles the day-to-day, but an accountant for setup, taxes, and quarterly review is worth it.
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