During the first two years of Collegewise, I tried to track all our income and expenses on a spreadsheet. I was an English and history major in college so you can guess how well that went. Here’s how I solved the problem, and what I’d recommend for any new private counselor in handling your accounting.
1. Buy a copy of QuickBooks accounting software and install it on your computer.
Now you can print invoices and statements for customers and keep track of all your incoming/outgoing money. You can also add their merchant services option to accept credit cards if you want to. But before you get too deep into all those things, do #2.
2. Find a “QuickBooks ProAdvisor” in your area here (preferably one who also does bookkeeping).
Back in the day, I paid $150 for one to come to my office for 2 hours. She customized QuicBooks to our products and services, explained how to categorize our expenses, and showed me how to use the software to track every penny that came in—and went out—of our business. Totally worth the $150.
3. Consider using that same advisor to do your books once a quarter.
He or she will already be familiar with your business, and since they set up the QuickBooks for you, they’ll know exactly how to interpret your data. They’ll get it done faster and cheaper than if you brought in a different accountant. And your taxes will be a snap.
I’m all for bootstrapping and doing things yourself before you hire someone else to do it. But accounting is too important to leave to chance. If you’re spending more time on your accounting than you are servicing your customers, it might be time for a change.