Starting a business? Let’s talk about the part that no one gets excited about but everyone needs to get right: bookkeeping.
If you’re a new business owner, I know what you’re probably thinking:
“Bookkeeping sounds complicated, and I don’t want to mess it up.”
I felt the same way. But here’s the good news — it’s way easier than you think. You don’t need to be a spreadsheet wizard or have a finance degree to get this right. All you need are the right tools and a simple system.
Let’s walk through how I set up my own bookkeeping system (with Zoho Books), and how you can do the same — in just a few steps.
Watch How To Set Up Your Finances the Easy Way
Step 1: Choose the Right Accounting Software
There are lots of great options out there like QuickBooks, Xero, and Wave. I personally use Zoho Books because:
- It’s clean and easy to use
- It connects to all my other Zoho tools (CRM, Projects, Inventory, etc.)
- It’s included in Zoho One if you’re already using that bundle
Whatever you choose, make sure it’s cloud-based, integrates with your other systems, and has built-in automation.
Step 2: Connect Your Bank Accounts
Most accounting tools allow you to connect directly to your bank and credit card accounts. This is called a bank feed, and it will pull in your transactions automatically.
Why it’s magic:
- You’ll save time on manual entry
- You’ll always have real-time visibility on your cash flow
- Reconciling transactions becomes way easier
Step 3: Start Categorizing Transactions
Once the transactions start rolling in, here’s what to do:
Attach receipts to every transaction
Make sure the amount on the receipt matches the bank feed. You can upload a PDF or take a quick picture with your phone.
Make sure the amount on the receipt matches the bank feed. You can upload a PDF or take a quick picture with your phone.
Categorize your spending
Assign each transaction to an account like:
Assign each transaction to an account like:
- Marketing
- Software & Subscriptions
- Contractor Payments
- Travel
- Office Supplies
And for income: tag which customer or project it came from.
⚠️ Pro tip: Don't mix business and personal expenses. Trust me — future-you (and your accountant) will thank you.
Step 4: Review Monthly Reports
Most accounting platforms will auto-generate reports like:
- Profit & Loss (P&L)
- Balance Sheet
- Cash Flow
Even if you don’t understand all the terms right away, looking at these each month gives you insight into how your business is doing and where your money is going.
Bonus Tip: Talk to an Accountant
Software can automate a lot, but getting professional guidance (even just once or twice a year) can help you:
- Maximize your deductions
- Stay compliant with taxes
- Avoid common financial pitfalls
You don’t need to be a financial pro. You just need a simple, consistent system and the right tools to support you.
Final Thoughts
Bookkeeping doesn’t have to be scary. If you can categorize your spending and upload a receipt, you’re halfway there.
Set it up once, build good habits, and you’ll be amazed how much easier it is to actually understand what’s happening in your business.
If you’re ready to set up your own system, give Zoho Books a try — or message me if you want to know how I set mine up to sync with my CRM and projects.
