Your business may be new or established for years, but the need for bookkeeping remains. You must keep track of all your income as well as your expenses to the penny to save you from thieves on one end, and the IRS on the other. Below, we will help you out with this small business bookkeeping guide to give you a better idea.

1. Contact a Local Bookkeeper

This should still be your first step even if you are considering doing your own bookkeeping. It is likely you will likely need their help several times a year, especially during tax time. In addition this initial appointment can help you determine the following for your small business:

  • A general understanding of your expenses and income.
  • Advice on how to minimize expenses and increase income.
  • How best to put aside estimated federal, state, and local taxes.
  • Recommendations on bookkeeping software and other related tools.
  • Maximization of your current accounts.
  • A huge plus is to ask if your bookkeeper can also help you prepare your small business tax return, as it is best left to the pro’s.

Did you know? The United States recorded just over 36 million small businesses for 2024, the latest year the data was available. These account for approximately 46% of jobs in the private sector. Source: Small Business Administration

2. Choose Your Bookkeeping Standard Operating Procedures

Choose your system based on the above recommendations. This includes software, preferred accounts, payment methods, and more. You will also want to decide between single and double entry bookkeeping. Single method is where one person does all the bookkeeping, which is only an option in small businesses of just one. Double entry bookkeeping is recommended for all others to ensure both bookkeepers are coming up with the same numbers. You may use an external bookkeeper to conduct your second entries.

3. Set Up Your Payroll Procedures

Payroll is essential for all small business owners. They should know who is on the payroll, how much they receive, and when/how they are to receive it. He or she should be in charge of all payroll changes. This includes any contract workers, part time employees, or any other expense that could fall under payroll. Additionally, some bookkeepers also offer payroll services.

The area for Houston, Pasadena, and The Woodlands has just under 1 million small businesses. Transportation and warehousing had the most small businesses at over 120,000.

4. Go Over the Books Each Month

No matter what the size of your business, you should go over the books at least once a month. We have seen many trusting owners let problems persist until it is too late. The good news is that the systems you set up can generate reports at time to be collaborated with statements from your bank, credit cards, etc. Those of you who use an external bookkeeper can request regular updates on your books as well.

More on the Small Business Bookkeeping Guide in Houston

Are you a small business located in the Houston area? Let us help save you time and money by doing your books. Just contact us to set up an appointment.