Running a small business is exciting, but it also comes with a lot of responsibility—especially when it comes to keeping track of your finances. Proper bookkeeping isn’t just about staying organized; it’s about understanding your business’s financial health and making informed decisions. If you’ve ever searched for small business bookkeeping near me, you’re already on the right track to improving your business operations. Here’s a straightforward guide to the bookkeeping essentials every small business owner should track.

1. Income and Expenses

Tracking your income and expenses is the foundation of good bookkeeping. You need to know exactly how much money is coming in and going out each month. This includes:

• Sales revenue
• Cost of goods sold (COGS)
• Rent, utilities, and other overhead costs
• Marketing and advertising expenses
• Employee wages and contractor payments

Keeping an eye on your income and expenses helps you avoid cash flow issues and keep your business more sustainable overall–you’d be surprised 

2. Accounts Receivable and Accounts Payable

Accounts receivable refers to the money owed to you by customers, while accounts payable refers to the money you owe to suppliers or service providers. Late payments can disrupt your cash flow, so it's important to stay on top of these numbers.

• Send invoices promptly and follow up on late payments
• Keep track of due dates for your own bills to avoid late fees
• Regularly reconcile your accounts to avoid discrepancies

Keeping track of receivables and payables helps prevent these delays from snowballing.

3. Taxes

No one likes tax season (except maybe your accountant), but it becomes much easier when you’ve kept accurate records throughout the year. You should track:

• Sales tax collected and remitted
• Payroll taxes
• Estimated quarterly tax payments
• Business deductions and credits

Working with a professional accountant service for small businesses can help you ensure you're maximizing your deductions while staying compliant with tax regulations.

4. Business Bank Statements and Credit Card Transactions

It’s easy to overlook small purchases or assume that bank balances reflect your actual cash flow. Make a habit of reviewing your business bank statements and credit card transactions regularly. This helps you:

• Spot fraudulent or erroneous charges
• Monitor cash flow
• Identify unnecessary expenses

Reconciling your accounts each month ensures that your books match up with your bank activity, giving you a clear picture of your financial position.

5. Financial Reports

Regular financial reports provide insight into how your business is performing and where you can improve. The most important reports to track include:

• Profit and Loss Statement (P&L)
• Balance Sheet
• Cash Flow Statement

These reports help you make strategic decisions about pricing, spending, and growth opportunities. If you’re not sure how to generate or interpret these reports, working with a small business bookkeeping expert can make all the difference.