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We at B&J have a diverse list of clients from the self employed to full sized businesses. While we pride our selves on doing a great job, there are certain bookkeeping skills that you should have on your own. Skills range from the simple to the less often thought of.

Houston bookkeeping skills1. Stop the Credit Madness

Unfortunately, credit card companies are the only ones who regularly get double digit returns for their money. It’s no secret how. They can charge their customers anywhere from 15% to 20% interest on their balance each month. That’s 12 times a year, while we are lucky to have quarterly compounded interest. While there is nothing wrong with carrying a balance that you pay every month, this isn’t always the case. A good strategy to paying down this debt is to start with the biggest one. Look for the ones with the highest balance and/or interest rates to see which will save you the most.

2. Halt the Splurges and Impulse Buys

Sure that great pair of shoes or tech is on sale, but do you really need it? Knowing when to splurge and when to reign it in is an essential bookkeeping skill. If you really like an item but don’t have the budget for it, wait. This is also a good idea because you may not be as keen on the item if you give it 24 hours. Must have the item? Shop around for it, as store windows aren’t known for their low prices. Remember that just one splurge can end up costing many times its traditional cost if it’s charged. Which leads us to:

3. Go Ahead and Buy

On the other end of the spectrum is the individual who keeps track of every dollar. We like this. However, this sort of person can also be hesitant to buy anything. They may research for hours. They may go without the item and end up costing themselves more (letting insurance lapse, not performing repairs, etc.). There is nothing wrong with being frugal, but you can buy items that you need within budget without guilt.

4. Know Your Net Worth

A great tip for both businesses and individuals. Calculate this number by first totaling all of your income. Secondly, calculate your expenses and subtract the two. The number you get may tell you a lot about your finances. If you spend more than you take in, it’s time to rethink your budget. If you make more than you spend, it’s time to rethink your investing.

5. Create a Last Will and Testament

No one livers forever, no matter what your age. We have seen bookkeeping disasters when someone dies without leaving a proper will and testament. This legal document assures that all of your assets go to the correct parties in the event of your death. Wills also prevent lengthy and costly disputes over your final wishes. Common recipients in wills include spouses, children, parents, and siblings. You can begin creating your own at Legal Zoom.

Get Our Houston Bookkeeping Skills and Expert Services

If you live in Houston and need some bookkeeping skills to help keep up with your money, feel free to contact us for assistance.

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