
Bookkeeping is an important part of any business in Virginia. However, managing it on your own can be difficult. This is where bookkeeping tools can be a life savior. These tools help you with your finance management and do not require a lot of expertise in the field.
These tools are free to use and user-friendly. However, some offer paid services that also improve your overall experience. While these tools are great for beginners, when your business expands, expert help might be necessary. A CPA in Christiansburg, VA, can offer valuable advice and help your company grow on a large scale.
Free tools you can use for bookkeeping
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Google Sheets or Microsoft Excel.
Google Sheets and Microsoft Excel allow you to create and customize your financial spreadsheets according to your specific needs. They contain various formulas that you can use to track your income and expenditures, create budgets, and make financial reports.
It allows its users to collaborate in real-time, which is very helpful if you are working with a team. If you are an advanced user, you can get access to various tools that can help you analyze data more deeply and manage everything more precisely.
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Wave Accounting.
If you are a small business owner or freelancer, Wave Accounting might be an ideal option for you. This program is completely free and allows beneficial features such as expense tracking, invoicing, etc.
You can connect multiple bank accounts and automatically import transactions. This can save you time by reducing the time for manual entry, and you can focus on other areas.
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ZipBooks.
If you are afraid to use software and programs, do not worry. Zipbooks is an easy and perfect tool for your new business. The starter plan is free and contains essential features such as basic reporting and invoicing.
You can manage an unlimited number of customers and vendors by using these tools. However, if you need to add another bank account, you might have to get a premium upgrade.
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FreshBooks.
Freshbooks is a paid accounting tool. However, it offers you a free trial period where you can explore its key features, such as invoicing, customizable invoices, and expense management. This can help freelancers or small business owners determine whether this app will meet their long-term accounting needs.
How to set up a bookkeeping system– steps for beginners
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Establish a chart of accounts.
If you are a beginner, make sure to establish a chart of accounts. This chart is a list of all the accounts you use to categorize transactions in your business. Common categories include assets, liabilities, equity, income, and expenses. This can help you organize your financial data more effectively.
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Track income or expenses manually or digitally.
Business owners can track their expenses in two ways: manually and digitally. Manual tracking can be done using spreadsheets, and digital tracking can be done using accounting software.
Manual tracking may involve using a notebook or spreadsheet to record all the financial transactions. However, digital tools can help you automate this process.
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Use receipt tracking tools.
Keeping track of receipts of all financial transactions is very important. Therefore, business owners are advised to use receipt-tracking tools to maintain records accurately and streamline the process.
Through mobile apps and software, you can scan the receipt and store it directly on your device. This will allow you easy access to the records when you need them for tax purposes or financial reporting.
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Create financial statements.
Creating financial statements can help you evaluate your business’s financial health. Common financial statements include the balance sheet, income statement, and cash flow statement. These statements can summarize your financial activities and provide you with insights about your business.
Get expert help today!
If you are struggling to manage your bookkeeping, hire a CPA to ease the process today!