Organization is key – key to what?

As entrepreneurs we are always looking for ways to make money. Isn’t that one of the reasons we became entrepreneurs?

There is no greater way of losing opportunities to make money than being disorganized. Wasting time searching for documents we have misplaced, digging through piles of papers looking for customer orders, flipping through receipts trying to find that one for the item we need to return and worst of all, searching our emails looking for that one email that has the attachment we so desperately need!

Wasting time is the number one reason why we lose opportunities for making money!

Yes, I get it! It takes TIME to get ORGANIZED. But when you think of the investment in time to get organized, you will save so much more time later. Automating our systems is the next time saver that will allow us to make more money! But that’s another topic we can discuss later.

Back to getting organized. So can bet you are wondering “where do I start?” Am I right? Simple. Think about how you work and what are the steps you take from beginning to end when you work with your clients. Think about how you group your customers, services, products, supplies, etc. Create a list with the groupings for each of these categories. These are the “folders” you are going to create and start “filing” the documents, emails and digital documents. Yes, they are going to look the same! Why? Because when you think of where you are going to look for something — you will know EXACTLY where to look regardless of the type of item it is. And guess what? These categories are going to be cross-referenced in your bookkeeping! Easy, peasy!

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You’ve completed your bookkeeping, put your paperwork away and shut off your computer. Without a second thought you walk out of your office and end your day.

You have set up a backup system to your computer and trust that it works to keep you protected from losing any of your bookkeeping data.  Doesn’t it feel great to have that in place?

So what about the other backup?

When I talk to clients about backing up their data this is where their mind goes right away. I’m very pleased when they tell me that their computer backups are in place (when they are). But the backup I find myself talking about these days is “proof in numbers”.

Entrepreneurs worry about filing their personal, corporate and sales taxes on time so C.R.A. (Canada Revenue Agency) won’t come knocking on their door. Filing on time will certainly help reduce the chance of that wolf coming to your door (the C.R.A. Auditor), but it’s not necessarily what will let you sleep well at night.

What will keep you awake at night, or at least it should, is the lack of documentation and proof behind the numbers.

I’m talking about receipts for purchases, invoices for sales and documents for deposits that don’t relate to your sales. Working from bank statements and credit card statements are NOT your proof in the pudding. Sure it shows you purchased items and deposited money. But the lack of details is the problem. According to C.R.A you are responsible for accounting and financial documents include the documents to support these transactions.

Notice it states “documents to support these transactions”. This means receipts, invoices, etc. documentation that shows the details of the transactions etc.

I have been through a few audits with a couple clients and we always sailed through them easily, because I ALWAYS backup the transactions with receipts or documentation that provides details for the transactions.

Backup, backup, backup.  This is more than just a digital backup of your accounting data.

How do you protect yourself?

1. Ensure you have receipts with details – where details are lacking, make notes on the back of the receipt.
2. Ask restaurants for the receipts that show the taxes (quite often you only get the POS receipts).
3. Create a simple filing system to store your receipts until you have recorded them in your bookkeeping program. (Sign up for my Let’s Get Organized Together workshop)
4. Have steps in place that ensure documents are acquired for each transaction – make sure your employees know what is necessary.
5. Scan a copy of the receipts (with the details) and attach it to the transactions in Quickbooks Online.

Stay up to date with Canada Revenue Agency guidelines by joining my Facebook Bookkeeping Accountability Group

6 Steps to Release Overwhelm

Today I’d like to share 5 steps for releasing overwhelm when it comes to your bookkeeping. Yep, there, I said it! That dirty word…. bookkeeping. Are you cringing yet? Does that word or the thought of doing your own bookkeeping make you want to tuck tail and run the other way? It’s doesn’t have to  and I guarantee I can help you feel much better about your bookkeeping.

This beautiful picture hangs in my office, right by my desk. The title is “Release”, it’s part of a series called The Yellow Dress Project. It was painted by a beautiful soul by the name of Torre Marie.

So you are probably wondering why I added this picture in my blog. The moment I saw this picture, it spoke to me in so many ways.  It is a daily reminder for me to “Release” all that does not serve me.  That includes overwhelm and stress!

Starting a business is exciting. You had an idea that lit your fire, a product that you absolutely knew others would love. Or a service you could provide because you are just so damn good at it. I know exactly how you feel, because I absolutely LOVE to work with entrepreneurs like you, teaching you about money processes, what they are, what to pay attention to, how to read financial reports and how to find a great resources that will work with you to grow up your baby with you – almost like co-parenting, but it’s YOUR baby, YOUR business.

Bookkeeping was one of those things you probably didn’t think twice about. But now it’s constantly in your face with the invoicing of clients, the purchasing of products and services and not to mention keeping track of those bank accounts (which includes PayPal, Stripe, Square, yada yada).

Do you have a drawer (or box) full of receipts that you’ve jammed in there thinking “I’ll deal with that later”. Is your In Box full of emails with digital receipts and payments from customers (you gotta love etransfers, but what do you do with those confirmations?).

Okay, let’s stop right there!

I’d like to tell you about a simple solution which will save you time and money. These are the two quantifiable elements in business that I like to save for YOU. When setting up a K.I.S.S. (Keep It Simple) System, you will no longer waste time searching for receipts and documents which will leave you with more time to make MONEY and make it easier to do your bookkeeping! I know how we all love to do that, besides isn’t that one of the reasons we got into business? Let me share these First K.I.S.S. steps with you.

1. Schedule a trip to Staples or Walmart to purchase your supplies, be sure to include time to create your K.I.S.S. system. If it’s not in your agenda, it probably will never happen!
2. Create a list of supplies;
   1. Desktop Hanging Folder Holder
   2. Additional Hanging Folders
   3. File Folders
   4. Labels
3. Grab your copy of “Organization is Key”  and review the sample Chart of Accounts and choose the expenses you need to track the most for your business. A bright Yellow Highlighter is great for this step. Take note of how many files you need to create – add that note to your list of supplies in Step 2
4. Get in your car and make that joyful trip to the store to purchase your supplies.
5. Once you are home, create your filing system!
6. Pull out that drawer/box and get sorting (if you have WAY too much to do and find yourself reaching your limit, schedule blocks of time to get it finished).

Once you have completed sorting those receipts/documents that have been tucked away for so long, find a convenient place for your new K.I.S.S. system. You know, that place you go when you walk in the door and unload. Some examples could be the kitchen counter or a shelf near your desk in your office.

In my next post I will share the Second K.I.S.S. step in my simple Keep It Simple Systems which will remove more overwhelm in stress.

Want help creating your First K.I.S.S.? Join me and a few other entrepreneurs for an in-person FiRST K.I.S.S. workshop where we build our desktop systems together (the supplies are included in the workshop) and learn about the Top 5 Things to Track in your business.